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29 March 2024

DI raises Dh400m through M'Sharie divestment

Khalid Kalban

Published
By Staff Writer

Dubai-based diversified conglomerate Dubai Investments has divested 40 per cent of its shareholding in M'Sharie, its private equity arm, via a private placement targeted towards selected strategic investors in the GCC.

The divestment of M'Sharie will allow Dubai Investments to raise a capital of Dh400 million.

The private placement was oversubscribed by more than 100 per cent.

Valued at Dh1 billion, M'Sharie is the leading corporate private equity firm in the UAE and holds ownership interest in 16 companies operating in diversified businesses, of which 14 are majority or fully owned subsidiaries and two are joint venture affiliates.

Regional investors who have acquired an equity stake in M'Sharie as part of the private placement include National Bonds Corporation (UAE), Gulf International Bank (Bahrain), Al Mal Capital (UAE), The First Investor (UAE), Al Arif Investment (UAE), Abdulaziz Alajlan Sons (KSA) and Ali Bin Hassan Dayekh (Dammam).

Commenting on the divestment, Khalid Kalban, MD & CEO of Dubai Investments, said: "The private placement of M'Sharie is a strategic move aimed at establishing a strong presence for the company within the GCC market and ensuring its continual growth by offering shareholding to a select group of investors from the UAE and GCC."

"By divesting a minority stake, we put ourselves in a better position to enhance M'Sharie's performance through the introduction of commercial relationships from new shareholders, and form strategic alliances that could significantly boost the expansion of M'Sharie's acquisition activities to other GCC countries," Kalban said.

The legal formalities are expected to be completed by the end of September; thereafter, a new board of directors will be constituted for M'Sharie.

Gulf International Bank were the placement agents for the deal.