Investcorp announces big dividends
Manama, September 14, 2011
Bahrain-based alternative investment bank Investcorp has agreed to a resumption of dividend payments to ordinary shareholders at a rate of $15 per share.
The announcement came at the Investcorp's annual meeting on Tuesday after the bank's earnings per share doubled to $128.
Last year, the bank brought in more than $1 billion in proceeds from alternative investments and the year was marked by a 67 per cent rise in placement and fundraising in the Gulf reached a total of $517 million.
'Against a background of low interest rates and the continuing high level of financial risk globally, this hike demonstrates the strong interest of Gulf investors in attractive alternative investment opportunities that offer diversification potential in the face of continuing macro-financial risks,' said executive chairman and CEO Nemir A Kirdar.
'Investcorp once again produced excellent results from all its diversified business activities on three continents,' he stated.
Kirdar pointed out that slowing growth in the US and sovereign debt problems in Europe were not affecting their core activities because they were in the business of identifying investment opportunities that involved buying individual companies that were in a position to advance in the current climate.
He said that while they continued to concentrate on finding investment opportunities in the US and Europe for regional investors they had now made some major investments in the region as well.
'About three years ago out investors came to us and suggested we invest in this region and as a response we set up a fund for them which is now valued at $1 billion for local investment,' he noted.
Kirdar said that while their local expertise lay in the Gulf region they did not rule out investments in companies in Libya or Tunisia if the right opportunities presented themselves and pointed out they has made investments in Turkey.
The $1 billion fund has so far invested just under half of the capital in five companies and plans to enter into five or six further opportunities in the next year or two.
'So far we have deployed 47 per cent of the fund,' said Investcorp president of Gulf business Mohammed Al Shroogi.
'These investments include Redington Gulf, the largest IT distributor and supply chain solutions provider in the Middle East and Africa and L'Azurde, the Arab world's leading designer, manufacturer and distributor of gold jewellery for the premium mass market.
'We have also invested in Gulf Cryo, the leading manufacturer of industrial, medical and specialty gases in the Middle East, and Tiryaki Agro, the leading trader and supply chain manager of agro commodities in Turkey,' he added.-TradeArabia News Service