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• Exits from rubber entities generates internal rate of return of 18%
• Masharie eyes new acquisitions in infrastructure, health sectors
Dubai - Masharie LLC, the private equity arm of Dubai Investments PJSC - a leading investment company listed on DFM, has announced divestment of its 51%stake in both International Rubber Company [IRC] and Techno Rubber Company [TRC] for AED 36.5 million.The stake sale in IRC and TRC generated an internal rate of return [IRR] of 18per cent.
Masharie had acquired 51 per cent stake in IRC in 2006 and TRC in 2010. IRC operates a 10,000 square metre facility at Dubai Investments Park [DIP] and is one of the leading manufacturers of synthetic rubber profiles in Middle East. TRC, based in Dammam, KSA,manufactures a wide range of rubber products for architectural applications and waterproof membranes.
Khalid Al Jarwan, General Manager of Masharie LLC, said: "Since our investments in IRC and TRC had reached maturity stage, Masharie decided to exit these companies with a view to reinvest the proceeds into higher return generating assets and investments. Backed by its extremely healthy liquidity position, Masharieis poised for aggressive growth in the coming years, driven by the expansion plans of its existing portfolio companies."
"Conditions are favourable to explore further acquisitions and Masharie has identified sectors such asinfrastructure, healthcare and hospitality to target new investmentsin the range of AED 60 million to AED 100 million," he added.
With surging demand in both contracting and manufacturing sectors, especially in construction and real estate-related businesses in the Gulf and Middle East, Masharie expects the top line from its existing portfolios to grow aggressively over the next three years.
Mashariecurrently owns eightoperating companies in its portfolio and includes companies in the businesses of aluminium extrusion, architectural aluminium designs, interior fit-outs, switch gears, drivers' training centre and laboratory furniture.
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About Masharie LLC
Masharie, a subsidiary of Dubai Investments PJSC, is one of the Gulf's leading investment companies which focuses on mergers and acquisitions through strategic equity partnerships. Since its inception in 1998, the company has forged equity partnerships with a number of business enterprises that offer strong growth potential and today boasts of eight operatinginvestments across diverse sectors. Operating in a number of businesses from interior design to industrial, Masharie looks to build companies that become, or remain, leaders in their respective fields dedicated to providing first-class service to customers.
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Venkat Iyer | Public Relations & Media Assistant Manager
DUBAI INVESTMENTS
PO Box 28171, Dubai, UAE
.T: +97148122400
.D: +97148122426
.F: +9714 8122424
.Mob: +971507187383
www.dubaiinvestments.com
© Press Release 2015
