Bahrain’s GFH completes acquisition of $1.2bn infra portfolio
Bahrain’s GFH Financial Group has completed the acquisition of a $1.2bn infrastructure portfolio, taking its total land bank to more than 1,858ha
GFH Financial Group has completed the acquisition of a $1.2bn (BHD452.6m) infrastructure portfolio that spans the Middle East and Africa.
Funded by a $315m (BHD118.8m) capital increase – taking the Bahrain-based investment group’s issued and paid-up capital to $975m (BHD367.8m) – the deal brings GFH’s Middle East, Africa, and India land bank to more than 1,858ha (200 million sqft).
The acquisition forms part of GFH’s updated growth strategy, which was approved at an extraordinary general meeting in March 2017.
The deal is subject to regulatory approvals, according to a missive issued by GFH to Dubai Financial Market (DFM).
Hisham Alrayes, chief executive officer of GFH, said: “We are pleased to complete this major acquisition in GFH history today, and deliver one of the key milestones in our new strategy.
“The acquisition adds another main line of business to GFH, infrastructure investments, alongside investment banking, commercial banking, and real estate. We have been able to secure this great deal at a time where we have captured a great acquisition value for GFH shareholders.
“International and regional reputed developers have expressed their interest to partner with GFH in this portfolio. Hence, we foresee substantial returns to our shareholders in the medium- to long-term,” Alrayes added.
GFH recorded a net profit of $62.1m (BHD23.4m) in H1 2017, a 440% year-on-year increase compared to the $11.5m (BHD4.3m) figure achieved during the corresponding period of 2016.