Masharie, the private equity arm of Dubai Investments – a leading investment company listed on DFM, has divested its 51 per cent stake in both International Rubber Company (IRC) and Techno Rubber Company (TRC) for Dh36.5 million ($9.9 million).

The stake sale in IRC and TRC generated an internal rate of return (IRR) of 18 per cent, said a statement.

Masharie had acquired 51 per cent stake in IRC in 2006 and TRC in 2010. IRC operates a 10,000-sq-m facility at Dubai Investments Park (DIP) and is a leading manufacturer of synthetic rubber profiles in Middle East, while TRC, based in Dammam, Saudi Arabia, manufactures a wide range of rubber products for architectural applications and waterproof membranes.

Khalid Al Jarwan, general manager of Masharie, said: “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.”

“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 Dh60 million to Dh100 million,” he added.

With surging demand in both contracting and manufacturing sectors, especially in construction and real estate-related businesses in the Gulf and Middle East, Masharie expects the top line from its existing portfolios to grow aggressively over the next three years, said the statement.

Masharie currently owns eight operating companies in its portfolio and includes companies in the businesses of aluminium extrusion, architectural aluminium designs, interior fit-outs, switch gears, drivers’ training centre and laboratory furniture, it added. - TradeArabia News Service