PHOTO
08 March 2017
Qatar First Bank (QFB), which is listed on the Qatar Stock Exchange, has sold a partial stake in one of the most successful leading healthcare platforms in Abu Dhabi, Dubai, Sharjah and Kuwait.
The Shariah-principled lender sold 44% of its shares in this investment generating more than two times cash-on-cash returns on the exited stake.
QFB’s successful realisation of its investment shows the bank’s capability in private equity and its ability to manage profitably exit investments in a difficult economic environment, according to its chief executive Ziad Makkawi.
“During 2017, we will continue to diversify our portfolio and focus on business services, healthcare, education and real estate sectors while expanding into new geographical markets regionally and internationally,” he added.
Terming it as a very good investment for the bank, Ihab Asali, managing partner (alternative investments) at QFB said, “We still hold shares in the group to benefit from future upside.”
During 2016, the global investment market continued to go through major challenges, resulting in a downward revision of the valuations of some of the bank’s investments across several markets.
Specifically, QFB’s private equity portfolio, which had consistently generated significant returns for the last six years, was negatively impacted by country-specific events in both Turkey and the UK, its spokesman said.
“Despite the downward revision in 2016, the current valuation for both of our investments in Turkey, Memorial Healthcare Group and English Home, is still 47% higher than their acquisition price; both companies continue to grow in sales and profitability and occupy leading positions in their respective industries,” Asali said.
The decrease in the valuation of QFB’s Turkish investments reflects the effect of the macroeconomic and extraordinary factors the country faced in 2016. The main impact came from the depreciation of the Turkish lira against the US dollar and the decrease in number of international visitors which affected the healthcare and retail sectors.
The bank’s investments in the UK were also affected by the significant depreciation of the pound against the US dollar and the weakening of the real estate sector, principally as a result of the Brexit referendum.
“Despite the depreciation in currency, our UK investment, luxury jeweller David Morris, is still significantly above our acquisition cost, both in pounds and riyals. This investment had strong performance during 2016,” he said.
Qatar First Bank (QFB), which is listed on the Qatar Stock Exchange, has sold a partial stake in one of the most successful leading healthcare platforms in Abu Dhabi, Dubai, Sharjah and Kuwait.
The Shariah-principled lender sold 44% of its shares in this investment generating more than two times cash-on-cash returns on the exited stake.
QFB’s successful realisation of its investment shows the bank’s capability in private equity and its ability to manage profitably exit investments in a difficult economic environment, according to its chief executive Ziad Makkawi.
“During 2017, we will continue to diversify our portfolio and focus on business services, healthcare, education and real estate sectors while expanding into new geographical markets regionally and internationally,” he added.
Terming it as a very good investment for the bank, Ihab Asali, managing partner (alternative investments) at QFB said, “We still hold shares in the group to benefit from future upside.”
During 2016, the global investment market continued to go through major challenges, resulting in a downward revision of the valuations of some of the bank’s investments across several markets.
Specifically, QFB’s private equity portfolio, which had consistently generated significant returns for the last six years, was negatively impacted by country-specific events in both Turkey and the UK, its spokesman said.
“Despite the downward revision in 2016, the current valuation for both of our investments in Turkey, Memorial Healthcare Group and English Home, is still 47% higher than their acquisition price; both companies continue to grow in sales and profitability and occupy leading positions in their respective industries,” Asali said.
The decrease in the valuation of QFB’s Turkish investments reflects the effect of the macroeconomic and extraordinary factors the country faced in 2016. The main impact came from the depreciation of the Turkish lira against the US dollar and the decrease in number of international visitors which affected the healthcare and retail sectors.
The bank’s investments in the UK were also affected by the significant depreciation of the pound against the US dollar and the weakening of the real estate sector, principally as a result of the Brexit referendum.
“Despite the depreciation in currency, our UK investment, luxury jeweller David Morris, is still significantly above our acquisition cost, both in pounds and riyals. This investment had strong performance during 2016,” he said.
© Gulf Times 2017
