BBN Report
Strategic acquisitions helped group achieve growth
ABU DHABI/March 07-2021: Abu Dhabi-based strategic investment company, International Holding Company (IHC), has reported a net profit of AED3 billion for 2020, a six-fold increase compared with that in the previous year, driven by a series of acquisitions as well as organic growth across its diversified portfolio.
The company has reported annual revenues of AED7 billion, compared with AED1.26 billion in 2019. The company has experienced rapid expansion across its major business segments, which include healthcare, food products, real estate, agriculture and digital technologies.
Strategic acquisitions
The expansion is the result of well-thought-out strategic acquisitions of companies within its industry, through business combinations and common control, which would help drive value and long-term growth.
The company also sought investments in significant minority stakes in growth companies.
IHC has taken stakes in California-based aerospace company SpaceX through a private equity fund, as well other investments in UK-based DNA sequencing firm Oxford Nanopore Technologies, New York digital marketing company Yieldmo, and Abu Dhabi National Oil Company (Adnoc).
Syed Basar Shueb (seen in the picture), IHC’s Chief Executive Officer (CEO) and Managing Director, said that IHC has transformed into a major investment company that benefits from a robust balance sheet and a highly diversified portfolio that spans six vertical segments.
“Although our growth has been partially driven by strategic acquisitions and investments, our subsidiaries have also delivered strong organic revenue growth of 165 per cent, displaying significant resilience when faced with considerable global macroeconomic challenges,” Basar Shueb said.
IHC has built a solid platform for value creation in the coming years, and is well positioned to invest further in high potential opportunities.
IHC has a clear strategy of enhancing its portfolio through acquisitions, strategic investments, restructuring, consolidation, diversification, and divesting.
More portfolios
With more than 25 entities, the current six vertical segments: Industrial, Capital, Digital, Food, Utilities and Real Estate will be expanded in 2021 to include Education, Leisure and Retail, Agriculture and Healthcare.
The company said it will continue to enhance shareholder value through growth, operational synergies and maximize cost efficiencies.
It will also continue to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad.
Assets surge
IHC’s total assets increased to AED14 billion as on December 31, 2020, from AED4 billion a year earlier. The company held cash and cash equivalents of AED3.7 billion at the end of 2020. IHC was founded in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE.
