Masharie divests GCC rubber stakes for $10m

Dubai Investments’ private equity arm, Masharie, has divested from International Rubber Company (IRC) and Techno Rubber Company (TRC)

Khalid Al Jarwan, general manager, Masharie.
Khalid Al Jarwan, general manager, Masharie.

Masharie has divested its 51% stake in the UAE’s International Rubber Company (IRC) and Saudi Arabia’s Techno Rubber Company (TRC) for $10m (AED36.5m).

The move has been made in a bid to free up capital to pursue fresh acquisitions within the infrastructure, healthcare, and hospitality sectors, according to the firm.

The sale has generated an internal rate of return (IRR) of 18% for Masharie, the private equity arm of Dubai Investments.

Khalid Al Jarwan, general manager of Masharie, commented: “Since our investments in IRC and TRC had reached maturity stage, Masharie decided to exit these companies with a view to reinvest the proceeds into higher return generating assets and investments.

"Backed by its extremely healthy liquidity position, Masharie is poised for aggressive growth in the coming years, driven by the expansion plans of its existing portfolio companies."

Masharie acquired its 51% stake in IRC and TRC in 2006 and 2010, respectively. The company said that with surging demand in both contracting and manufacturing sectors – particularly within the Middle East’s construction and real estate segments – it expects the top line from its existing portfolios to grow aggressively over the next three years.

Al Jarwan added: “Conditions are favourable to explore further acquisitions, and Masharie has identified sectors such as infrastructure, healthcare, and hospitality to target new investments in the range of AED60m ($16.33m) to AED100m ($27.22m).”

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