DUBAI Investments (DI), the leading investment company listed on the Dubai Financial Market, registered a AED805 million net profit for the first six months of 2014, an increase of 118 percent from AED370 million over the same period last year.
DI reported a consolidated total income AED1.8 billion in the first half of 2014, as against AED1.3 billion for the comparable period last year. Total assets as of June 30, 2014 stood at AED13.5 billion, while net worth increased to AED9.6 billion.
The annualized return on share capital achieved for the period was also higher at 42.1 percent, compared to 21.5 percent for the full year of 2013. During the period, DI divested 66 percent equity stake in its wholly-owned pharmaceutical subsidiary Globalpharma Co. LLC to an investor group led by Sanofi, a leading global healthcare company. The transaction contributed a profit of AED472 million to DI, representing realized gain on disposal of controlling interest of AED296 million and fair value gain on the retained investment of AED176 million.
Khalid Bin Kalban, Managing Director and CEO of Dubai Investments, said: “We are quite pleased with the way 2014 has progressed so far. In Q1 2014, DI concluded a historic $300 million sukuk issuance and now in Q2 we have successfully concluded a strategic divestment of 66 percent interest in Globalpharma. These transactions have reinforced our position as a major player in the UAE business landscape and have placed us in a good position to capitalize on the available opportunities, and create further value for our shareholders.”
“Our divestment in Globalpharma was well-timed as we capitalized on the rapid growth in the pharmaceutical sector in the region. With the direction and backing of DI, the management executed a successful strategy and created an opportunity for a lucrative divestment,” he added.
DI owns around 35 subsidiaries and joint ventures encompassing a diverse range of sectors including manufacturing of construction-related materials, fast moving consumer goods, pharmaceuticals, industrial and commercial properties, real estate management and property development, information technology solutions, driver education, district cooling and financial investments.© Copyright - Saudi Gazette