Kuwait - Mubasher: Global Investment House (Global) announced that its alternative asset management arm, Global Capital Management (GCM), concluded a successful exit from the controlling 93.27% stake in Jordan Trade Facilities Company (JOTF).
JOTF is owned by Global MENA Financial Assets Limited (GMFA), an investment fund managed by GCM, and associated companies, according to Global’s press release issued on Saturday.
The transaction was completed on the 6 September 2016, generating a net amount of $29 million and a new board was elected on Thursday 22 September 2016 to represent the new shareholder.
GMFA acquired a majority stake in JOTF in 2008, just a few months before the international financial crisis, which had a severe impact on the Company’s performance and value as the Company businesses were strategically shrunk to avoid being exposed to delinquent loans, the statement indicated.
However, in the beginning of 2011, the management team of GCM implemented a restructuring program of JOTF operations, and at the beginning of 2015, a new management team was hired to implement the growth strategy bringing with them extensive experience in retail banking.
Consequently, results were crystalized instantly, with 160% growth in net profit, 16% growth of the loans portfolio and the distribution of 10% cash dividends in one of the most challenging periods for the sector in Jordan and the region in general.
"We are extremely delighted to have completed this exit, and providing our investors with liquidity in such challenging geopolitical and economic environment,” said Sulaiman Al Rubaie, Managing Partner of GCM.
