Business | General
Tabreed revises business model to boost earnings
Tabreed will launch a major strategic revision in its business structure to increase its future profitability, according to a company statement.
- Staff Report
- Published: 23:41 June 29, 2008
Dubai: Tabreed will launch a major strategic revision in its business structure to increase its future profitability, according to a company statement.
Tabreed will immediately form a new asset holding company into which existing assets will be transferred at fair market value.
"We are pleased to announce that there is a new emphasis on profitability and shareholder returns. The new business model will allow Tabreed to fund its growth while providing increased shareholder value," said Khadem Al Qubaisi, chairman of Tabreed.
"With the formation of a new holding company, Tabreed will remain as the manager and operator of the transferred assets," he added.
The company's board approved the major plan after commissioning a major study by Booz & Company.
The study has resulted in several strategies that will enable Tabreed to reduce long-term debt, avoid raising additional shareholder equity and increase the return on equity going forward.
Maximising value
"Through this new business model, we are now more focused on increasing the investments of our shareholders and improving the company's profits.
"Tabreed is always in the process of a continued corporate evolution maturing into a more responsive as well as progressive public company," said Al Qubaisi.
Tabreed, now in its tenth year of operation, recently launched a Sharia-compliant product offering mand-atory convertible trust certificates. These certificates can be exchanged for ordinary Tabreed shares at maturity.
The certificates are available to investors in the Middle East as well as Europe and Asia.
Share this article
More from Business General
More from Business
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Shaikh Mohammad reaffirms UAE unity
Vice-President quashes talk of discord and reassures investors on the strength of Dubai's economy
-
Pizzazz on the palm: A Nikki Bisiker project
Bright, bold and ultra glam are the top notes of this apartment in The Palm Jumeirah's beautiful marina
-
flydubai starts service to Sudanese capital
Dubai's first low cost airline, celebrated its eighth inaugural flight in less than six months
