04/08/2014 07:54 AST
DUBAI: Dubai Investments (DI), the leading investment company listed on the Dubai Financial Market (DFM), on Sunday announced that its net profit for the first six months of 2014 has surged to Dhs805 million, an increase of 118 per cent compared to a net profit of Dhs370 million for the similar period last year.
Announcing its financial results for the six-month period ended June 30, 2014, Dubai Investments reported a consolidated total income Dhs1.8 billion in the first half of 2014, as against Dhs1.3 billion for the comparable period last year. Total assets as on June 30, 2014 stood at Dhs13.5 billion, while net worth increased to Dhs9.6 billion.
The annualised return on share capital achieved for the period was also higher at 42.1 per cent, compared to 21.5 per cent for the full year of 2013.
During the period, DI divested 66 per cent equity stake in its wholly-owned pharmaceutical subsidiary Globalpharma to an investor group led by Sanofi, a leading global healthcare company. The transaction contributed a profit of Dhs472 million to DI, representing realised gain on disposal of controlling interest of Dhs296 million and fair value gain on the retained investment of Dhs176 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 second quarter we have successfully concluded a strategic divestment of 66 per cent 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 capitalise on the available opportunities, and create further value for our shareholders.”
“Our divestment in Globalpharma was well-timed as we capitalised 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,” Kalban 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.
Incorporated in 1995, Dubai Investments is a leading investment company listed on Dubai Financial Market with over 19,894 shareholders, and paid-up capital of Dhs3.5 billion. The company works in manufacturing, financial investments, real estate development and mergers and acquisitions.
The Gulf Today
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