Al Qudra Holding, an Abu Dhabi-based real estate and investment company, agreed to buy Al Rayan Investment Company for more than AED 1 billion in stock.
The news was announced at Al Qudra Holding’s (profile) annual general meeting, which also approved floating the company’s shares on Abu Dhabi Securities Exchange.
Additionally, a new board of directors was elected, headed by H.E. Mohamed Thaaloob Al Derei, Chairman, Mr. Khalifa Yousef Khouri as Vice-Chairman, and Mr. Ahmed Mohsen Mahfouz, Mr. Salem Rashed Al Niyadi and Mr. Khalid Al Muhairi as board members.
H.E. Khalifa Yousef Khouri, Vice Chairman of Al Qudra Holding said: “Al Qudra Holding, and for the fifth year running, recorded an increase in net operating profit, with a growth from AED 206 million in 2015 to AED 264 million in 2016.”
The company achieved total revenue of approximately AED 1 billion in 2016 and maintained a high profit margin of 39%. The increase in profitability reflected on the net profit per share, which surged from 34.4 fils per share in 2015 to 43.9 fils per share in 2016.
The shareholders also agreed the acquisition of Al Rayan Investment Company (profile) through a share swap worth more than AED 1 billion. The acquisition will involve increasing the paid-up capital of Al Qudra Holding through the issuance of 210.4 million new shares. The subscription for the new shares will take place in May.
Following the acquisition, Al Rayan Investment Company becomes a subsidiary of Al Qudra Holding. Total Assets of the combined company will increase to approximately AED 4 billion.
The company initiated the issuance of convertible bonds of AED 250 million. The bond will have a guaranteed annual coupon and will be listed on Abu Dhabi Securities Exchange. The shareholders further approved the listing of Al Qudra Holding’s shares on the Exchange’s secondary market.