Stake acquired by Tamkeen, a unit of INVESTBANK in Jordan
KUWAIT CITY, Jan 9: Global Investment House (Global), a regional asset management and investment banking firm headquartered in Kuwait, with offices in major capital markets in the MENA region, announced today that its alternative asset management arm, Global Capital Management (“GCM”), has concluded a successful exit from the controlling stake in Bindar Trading and Investment Company (“Bindar”) at a sizeable premium above the quoted price.
The stake was held through two of its managed funds, Global MENA Financial Assets Limited (GMFA) and GIMBAL Holding. GMFA acquired a majority stake in Bindar in 2008, just a few months before the international financial crisis, which tremendously impacted the consumer finance industry in the Middle East as well.
In the wake of lingering financial services crisis and Arab Spring, the management team of GCM implemented a restructuring and growth program for Bindar. The program was focused on expanding the branch network, diversifying the product base, enhancing the quality of lending, strengthening the balance sheet, diversifying financing sources and improving the corporate governance of the company.
For the period 2012-2016, the company had a cumulative growth of 17% in revenues, 54% in net profits, and 23% in assets in one of the most challenging periods for the financial services sector in Jordan. The company was also able to distribute material cash dividends for the same period. Sulaiman Mohammed Al-Rubaie, Deputy CEO of Global Investment House and Managing Partner of GCM commented on this exit by saying “We are extremely delighted to have completed this exit, and providing our investors with liquidity in such challenging geopolitical and economic environment”. He added: “The strong financial position, net income and quality of the loan portfolio made Bindar an ideal target for the acquirer, Tamkeen, a subsidiary of INVESTBANK.
The acquisition being concluded without a differing view on the portfolio quality is a testimony to the highest governance norms we set for ourselves and our portfolio companies. This is the third exit in the past one year from our consumer finance and banking assets through consolidation with a local financial institution”. Zakir H. Rizvi Partner at GCM and Fund Manager of GMFA commented: “We are proud to have successfully exited the company knowing that we have built a solid foundation for future growth. We would like to thank all board members, the management team and employees for their support and contribution. He further added that GCM team has demonstrated its capabilities in managing, growing and exiting assets across diverse sectors and in challenging market conditions.
Almost all the GMFA exits have been at substantially higher than the carrying values and for the listed companies at sizeable premium above the quoted prices.” Al-Rubaie concluded by thanking His Majesty King Abdullah II and the Jordanian Government for its openness and higher regulatory standards for the flow of foreign direct investment, which has made the environment conducive for international investors to invest directly and contribute to the growth of the Jordanian economy.
Global continues to have great interest in the vibrant Jordanian economy and is directing its interest towards high-tech and internet-related industries. The private equity team of Global has completed 42 exits, since inception, 26 out of which were since 2010, which is the highest among all private equity firms in the region, and has distributed around $580 million since inception.