Dubai Group earns 105% IRR

Dubai Group, the financial services company of Dubai Holding, yesterday said it sold its 15 per cent stake in Egyptian Fertilisers Company to Orascom Construction and Industries for Dh720 million, realising an internal rate of return of 105 per cent.

The stake was bought in early 2007 through Dubai Capital Group. It was sold as part of the recent transaction between Orascom and Abraaj Capital, Dubai Group said in a statement.

"Through this exit, Dubai Capital Group has realised an internal rate of return of 105 per cent, returning 5.75 times its original investment in less than three years," the statement said.

Mustafa Farid Geninah, the Chief Executive of Dubai Capital Group who stepped down from the Egyptian Fertilisers board after the sale, said: "Our successful underscores our exemplary track record in the region.

"In early 2007, we helped facilitate Abraaj Capital's 100 per cent acquisition of Egyptian Fertilisers, resulting in 226 per cent return on equity for us.

"Through our final exit, which is worth Dh720m from this investment, we have delivered further exceptional returns and value for our investors."

By focusing on strategic investments in public equity, green fields, growth capital and leveraged buy-outs, Dubai Capital Group has become a leading investor in the Mena region. It has also partnered with the Qatar Investment Authority in June 2007 to structure the region's largest joint venture investment company with $1 billion in capital. Focused on banking, investments and insurance regionally and globally, Dubai Group has offices in Dubai, London, Pittsburg, New York, Kuala Lumpur and Hong Kong. Through its subsidiaries and affiliates, Dubai Group has business interests in 16 countries.