Latest news with #EshraqInvestments
Zawya
16-05-2025
- Business
- Zawya
Dubai's Shuaa Capital pivots to Q1 profit following restructuring
Dubai-listed Shuaa Capital PSC swung to a net profit of 196 million dirhams ($53 million) in Q1 2025 from a net loss of AED 94.73 million in the year-ago period following a period of restructuring and capital optimization. The financial and investment services company made a net loss of AED 161 million in the preceding quarter. Accumulated losses now stand at AED 932 million, 25.4% of capital. The losses stem from a host of factors, including investment impairment, receivables write-off, and valuation adjustments at its associate, Eshraq Investments. Revenue was lower at AED 25 million versus AED 30.2 million in Q1 2024. Cost to income ratio improved to 81% in Q1 2025, improving from 129% in the previous quarter. Shuaa Capital's restructuring and capital optimisation strategies included settlement with a major creditor to restructure AED 208 million in outstanding facilities, the conversion and issuance of mandatory convertible bonds (MCBs) totalling AED 274.4 million, which were converted into equity, impairment of legacy assets, and various cost-cutting measures. Meanwhile Abu Dhabi-listed Eshraq Investment posted net loss of AED27 million for Q1, narrowing from a net loss of AED 306 million in the year-ago period. Eshraq is seeking to terminate its management agreement with Shuaa GMC after concerns about the valuation of the Goldilocks Fund. The largest shareholder of Eshraq is Abu Dhabi Financial Group, which was combined with Dubai-listed Shuaa Capital in a reverse merger in 2019, and now holds 18.38% of Eshraq. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
05-05-2025
- Business
- Zawya
Abu Dhabi-listed Eshraq chairman steps down
The chairman of Abu Dhabi-listed Eshraq Investments has stepped down to focus on other professional commitments, including his roles as a board member of Dubai-listed logistics firm Aramex and chairman of Islamic insurer Salama. Fahad Al Qassim, who was appointed in November 2023, played a critical role in the investor's new strategic direction, the company said. He is also director general of the Endowments and Minors Funds Authority, Abu Dhabi and a board member of Etihad Water and Electricity. Al Qassim was previously CEO, healthcare and life sciences, at Abu Dhabi sovereign wealth fund ADQ, which secured a majority stake in Aramex earlier this year. At its general assembly last week, shareholders voted not to discharge its auditors for the fiscal year ending 31st December. Abu Dhabi Securities Exchange (ADX) records show the company has been audited by Deloitte since the first quarter of 2019. Eshraq is also attempting to end the management agreement of Goldilocks Fund with its largest shareholder, Dubai-listed Shuaa Capital, following falling valuation. (Writing by Imogen Lillywhite; editing by Seban Scaria)
Zawya
19-02-2025
- Business
- Zawya
Shuaa Capital launches exchange offer for expired $150mln bond
Shuaa Capital is to launch its exchange offer for its $150 million notes, 16 months after original expiration, exchanging up to $75 million in aggregated principal amount for UAE denominated mandatory convertible bonds (MCBs). The Dubai-listed entity secured two extensions on the notes from October 2023 to March 31 2025 during its debt restructuring process, following the issuance of a senior unsecured 7.5% Reg S bond in October 2020. Following the original maturity date, Shuaa has been preparing to issue MCBs in two tranches, the first to existing noteholders, the second to new investors. The MCBs and the exchange offer were approved by shareholders at the Dubai-listed entity's general assembly on Monday – the bonds will convert to equity after issuance at AED 0.32 per share. The existing noteholder MCBs, for which the offer opens Wednesday, will be up to AED 275.5 million ($75 million). The offer remains open until February 28, with indicative results to be announced on 3rd March and settlement to take place on or before 18th March. The second tranche, to new investors, is of up to AED 150 million. The investment bank and asset manager previously announced it had had secured AED 85 million in commitments. New investor binding commitments include Abu Dhabi Securities Exchange-listed Eshraq Investments, of which it is the major shareholder, Al Baher Real Estate Development LLC and United Motors & Heavy Equipment Company LLC. Shuaa announced a full year loss of AED 288.6 million for 2024 compared to AED 907 million in 2023, with revenue falling from AED 161 million to 88.5 million YoY. (Writing by Imogen Lillywhite; editing by Seban Scaria)
Zawya
17-02-2025
- Business
- Zawya
Eshraq Investments' net losses surpass $157mln in 2024
Abu Dhabi: Eshraq Investments incurred net losses valued at AED 677.37 million in 2024, up year-on-year (YoY) from AED 545.10 million. Loss per share hiked to AED 0.25 in 2024 from AED 0.20 in 2023, according to the initial financial results. The net loss from investments registered in 2024 was mainly driven by asset write-downs by the Fund Manager following rigorous due diligence and re-valuation of holdings within the Goldilocks Fund. Total net investment value of the Goldilocks Fund hit AED 659 million at the end of December 2024, marking an annual drop from AED 1.33 billion. This was due to strategic exits from certain holdings executed by the Fund Manager as well as the abovementioned re-valuation of assets. Revenue from commercial Real Estate operations plunged 48% YoY, due to a decline in rental income following the profitable sale of Real Estate assets in Dubai in 2023. In the first nine months (9M) of 2024, the net losses of Eshraq Investments enlarged to AED 295.80 million from AED 81.44 million in 9M-23.
Zawya
11-02-2025
- Business
- Zawya
Shuaa Capital secures binding subscription commitments for MCB
Dubai-listed Shuaa Capital has received binding commitments from three entities for the subscription of its mandatory convertible bond (MCB) valued at up to AED 150 million, which is open to new investors. The investors are Abu Dhabi-listed Eshraq Investments, whose board approved the investment on Friday, United Motors & Heavy Equipment Company LLC, which is part of Abu Dhabi conglomerate Darwish bin Ahmed & Sons Group, and Al Baher Real Estate Development Company LLC. Al Baher was previously a significant Shuaa shareholder but sold its shares in November 2024. The MCBs are being issued as part of Shuaa's debt restructuring efforts, which have taken place over the past year. The bonds are to be issued in two tranches, one open to new investors valued at up to AED 150 million, and the second for noteholders of the entity's expired bond, valued at up to AED 275.5 million. They will be issued through private placement and will convert to equity in the company after issuance at AED 0.32 per share. Shuaa's share price closed at AED 0.235 on Monday.
