Saffar, a regional financial services firm, yesterday said shareholders of Saffar Holdings (formerly ABQ Investments) and Saffar International have approved the acquisition through a share swap of all shares of Saffar International not previously held. Going forward, the group will conduct business under the single name 'Saffar', a statement said.
"The acquisition will optimise the structure of the group combining a proven investment track record with a strong balance sheet and will build upon Saffar's growing reputation as a significant player in the alternative investments arena, particularly in the area of regional, early stage investments," the statement said.
As a result of the merger, Saffar's share capital has increased significantly.
"Since Saffar was formed, eight years ago, we have consistently followed a strategy based on investing in early stage companies with high quality management and strong business models. We generate value by helping young companies to manage cash flows prudently, while rolling out a business model across the region. Consistent with our business model, we have not used any leverage in our investments. This acquisition is testament to the success we have achieved with this approach over the years," said Mishaal Al Usaimi, CEO, Saffar.
Yousef Al Quraishi, Chairman of Saffar said: "We are confident that the combination of a proven management team with a strong network and resources creates a firm with aligned interests and robust corporate governance that is well-positioned to maximise shareholder value."
Saffar International was formed as the regional management and execution arm of ABQ, a private investment group that invests in strategic opportunities within various GCC and Mena growth sectors. Prior to the acquisition, ABQ owned a 60 per cent stake in Saffar International, with the rest reserved for an employee share ownership plan.
Saffar International was responsible for assisting ABQ in the sourcing, execution, development and management of ABQ's investments, including ABQ Zawya and Credit Suisse Saudi Arabia, among others.