Qatar Industrial Manufacturing Company (QIMC) acquires Amwal’s stake in Gulf Formaldehyde Company

6/26/2012

Acquisition increases QIMC’s stake in GFC to 20%  and signals its increasing focus on Petrochemicals

Qatar Industrial Manufacturing Company (QIMC) announced today that it is increasing its stake in Gulf Formaldehyde Company, Qatar, by acquiring the 5% share held by Amwal. With this transaction, QIMC’s stake in GFC rises from 15% to 20%.

QIMC was established in 1990 with 20%-80% Government-Private equity interests, with a vision of promoting small and medium industrial projects that gainfully utilize the natural resources and infrastructure of Qatar. Over the years, QIMC has established itself as a key player in the manufacturing sector, by establishing SMEs in chemicals, petrochemicals, construction materials and food processing sectors. Besides its portfolio of fully-owned business units, QIMC has also forged relationships with some leading companies within and outside Qatar, to establish path-breaking joint ventures.

In a press statement released today, QIMC reaffirmed that the acquisition of additional stake in GFC was perfectly aligned with its growth strategy ofinvesting in industrial projects that fit well in the broad economic context of Qatar. Speaking about the transaction, Mr. Abdulrahman Abdulla Al Ansari, CEO of QIMC said, “We are always looking for industrial investments that have a high potential for sustained profitable growth. While QIMC has already made its mark in Qatar, through its successful and profitable green field investments in various sectors, we would also like to seize organic growth opportunities, in a fair manner.

GFC is a fast growing company, harmoniously in tune with the large scale expansions being pursued by QAFCO. So we are delighted to increase our share in the company. We are very confident of getting attractive returns from this additional investment.”

“We have a well orchestrated growth strategy that is focused on the manufacturing sector and over the years, we have built the expertise and processes that help us seek, evaluate and select investment opportunities in a systematic and timely manner. Though we are not averse to establishing fully-owned business units, we are also mindful of the synergistic benefits available from win-win partnerships with carefully chosen local and global partners”, said Sheikh Abdulrahman Bin Mohd. Jabor Al-Thani, Chairman, QIMC.

Amwal became a founding shareholder in GFC in 2003as part of its early focus on providing clients with attractive investment opportunities in Qatar. Speaking about the sale of the GFC stake, Mr. George Shehadeh, CEO of Amwal said, “GFC has performed exceptionally well from the outset and we would like to thank QAFCO for its successful leadership role in this venture. The sale of our shares in GFC is in line with our strategy of investing in attractive companies and then providing an exit strategy to our investors with very attractive returns.”

About GFC

Gulf Formaldehyde Company (GFC) is a Qatari shareholding company with a paid up capital of QAR 40 Million, which produces and sells Urea Formaldehyde Condensate (UFC). Its plant in Mesaieed fully integrated with the production facilities of Qatar Fertilizer Company (QAFCO), which is the majority shareholder in GFC and its prime customer. United Development Company (UDC) is the other shareholder in GFC. In line with QAFCO’s expansion plans, GFC’s new plant, which will double its overall capacity, is in its final stage of commissioning

About Amwal

Founded in 1998 by Sheikha Hanadi Nasser bin Khaled Al Thani and a group of prominent Qatari institutions including Qatar Foundation, Qatar National Bank and Milaha, Amwal was the first investment firm in Qatar to be licensed by the Qatar Central Bank.  Through its newly established QFCRA authorized subsidiary, Amwal is a leading independent asset management and financial advisory firm serving high net worth individuals,family offices and institutional clients. Amwal has pioneered the Qatar industry for over a decade, with a number of firsts including the first to offer financial planning and wealth management, first mutual fund, first Islamic mezzanine private equity fund and the first money market fund.  It has recently received awards from Emeafinance for Best Asset Manager in Qatar- 2011 and from World Finance for Best Investment Bank, Qatar-2012.