By Staff writer
Investment firm says it has entered financial services sector by acquiring nearly 60% of Dubai-based company
Dubai Investments said on Monday that it has completed the acquisition of a 59.66 percent stake in Al Mal Capital.
Allied to the 1.20 percent already held by the company, Dubai Investments now holds an overall shareholding of 60.86 percent in Dubai-based Al Mal, which offers a range of investment products spread across its business lines of investment banking, brokerage and asset management.
The acquisition paves the way for Dubai Investments to enter the financial services sector and adds a strategic element to its diversified investment base, it said in a statement without giving a value to the deal.
Al Mal said its board has given the go ahead for the appointment of a consultant to work on aligning Al Mal’s strategy with DI requirements.
Khalid Bin Kalban, managing director and CEO of Dubai Investments and chairman of Al Mal, said: “We are excited about investing in Al Mal and believe we are well positioned to capitalise on their operational expertise and disciplined approach to risk management.
He added: “We have been eyeing an entry into the financial services sector for some time and the integration of Al Mal into the DI Group gives us the edge that we need as we continue our drive towards delivering even more value to our stakeholders.”
In April, Dubai Investments said it plans to enter new markets in Africa and the Gulf region, as it reported a 6.5 per cent rise in first-quarter net profit.
"Several new investment proposals are currently under evaluation, with some of them in advanced stages of negotiations," Kalban said in a statement.
Kalban said the firm was targeting diversified sectors such as financial services, education, healthcare and energy.