• Integrated Capital, an Abu Dhabi Financial Group company, to acquire 10% stake in GFH project, Falcon Cement Company.
  • IC has expressed an interest in underwriting Falcon Cement Company’s proposed IPO.

Bahrain – 22 March 2016: GFH Financial Group (GFH) today announced that it has signed a sale agreement with Integrated Capital (IC), the capital markets arm of the multi-billion dollar alternative investment firm Abu Dhabi Financial Group (ADFG). Under the agreement, IC will acquire a 10% stake in Falcon Cement Company (FCC) from GFH. The signing ceremony took place between Hisham Alrayes, CEO of GFH and Vice Chairman of FCC, and Jassim Alseddiqi, Managing Director and CEO of ADFG and Chairman of Integrated Capital, at ADFG’s headquarters in Abu Dhabi, UAE.

IC has also expressed an interest in underwriting FCC’s proposed initial public offering (IPO) planned on the Bahrain Bourse later in 2016 which is subject to the receipt of various internal and regulatory approvals.

Commenting on the agreement, Hisham Alrayes, CEO of GFH, said: “We are delighted to welcome ADFG, via IC, as a shareholder in FCC. Going forward, GFH and its subsidiaries will look to build on this strategic partnership with ADFG, as both groups stand to benefit from each other’s expertise and strength. This agreement is part of our overall strategy to bring in new shareholders as we take FCC to the next phase of growth.”

Jassim Alseddiqi, CEO of ADFG, added: “We have a keen interest in GFH Group’s business and are pleased to further our active involvement in the group through this landmark transaction. With FCC’s strong market position and potential for future growth, following the completion of a second production line later in 2016, the company represents an attractive investment opportunity for ADFG. As a leading investment management and financial services group, ADFG will continue to work with GFH and FCC to further enhance the business, its valuation and financial returns to investors and all stakeholders.”

Established in 2008, FCC is a highly recognized integrated cement plant in Bahrain, manufacturing Ordinary Portland Cement (OPC) and Sulfate Resistant Cement (SRC). Currently, FCC has a production capacity of 350,000 tons per annum, which is expected to go up to 850,000 tons with the upcoming launch of a second production line by end of 2016. FCC is valued at US$120 million.

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About GFH Financial Group B.S.C.:

GFH is one of the most recognised financial groups in the Gulf region. Its businesses include Asset Management, Wealth Management, Commercial Banking and Real Estate Development. The Group’s operations are focused in the GCC, North Africa and India. GFH is listed in Bahrain Bourse, Kuwait Stock Exchange and Dubai Financial Market.

For more information, please visit www.gfh.com

About Abu Dhabi Financial Group (ADFG):

ADFG through its subsidiaries stands as an alternative investment manager focused on growth and value creation across financial services, real estate, and technology.

Since it was established, ADFG has expanded and evolved to deliver consistent returns to its clients, pursuing a strategy of opportunistic investments across a variety of sectors and geographies. This approach has enabled the firm to successfully adapt to variations in the macroeconomic climate in order to respond to investors’ changing needs.

Today, ADFG has assets under management of $3.5bn, international offices in the UAE (Abu Dhabi and Dubai), the UK (London) and Montenegro (Podgorica), and has received widespread acclaim for its strong track record and pioneering approach to investing.

For further information on ADFG, visit www.adfg.ae

About Integrated Capital (IC):

Integrated Capital (IC) is a UAE Central Bank licensed investment company offering asset management and other capital market services. IC delivers superior and consistent financial returns to its shareholders and provides gold-standard service to all stakeholders to build a performance-orientated, collaborative and meritocratic work culture that attracts and retains the finest talent in their industry.

About Falcon Cement Company (FCC):

Falcon Cement Company (FCC) is the largest and only integrated cement producer in the Kingdom of Bahrain. The plant started operations in March 2009, catering to the local needs of the Kingdom of Bahrain and reducing its reliance on imported cement. Their principal operating cement is (OPC & SRC). Besides supplying their products to their local market, they also seek to export cement to customers in the region. FCC produces and distributes cement in bags and in bulk. FCC provides cement to large, complex and demanding projects for public and private customers primarily in the Kingdom of Bahrain. FCC has undertaken numerous landmark infrastructures, industrial and commercial projects in the Kingdom of Bahrain. FCC also registered Closed Joint Stock Company in December 2005 with the basic objective of manufacture cement.

For further information, please contact:

GFH Financial Group
Nawal Al-Naji
Tel: +973 17538538
Email: nalnaji@gfh.com

FTI Consulting
Manash Bhuyan
Tel: +971 50 8419631
Email: manash.bhuyan@fticonsulting.com

ADFG
Tom Drummond / Tameem Alkintar
ASDA’A Burson-Marsteller
Dubai, UAE
Tel: +971 44507600
Email: tom.drummond@bm.com / tameem.alkintar@bm.com