Abu Dhabi: Mubadala Development Company will be buying a 20 per cent stake in Bahrain-based alternative investment firm Investcorp, the two companies said in a joint statement on Thursday.
The two-step transaction sees Mubadala acquire a 9.99 per cent ownership stake immediately, with a further 10.01 per cent following necessary regulatory approvals, the companies said.
Mubadala did not divulge the value of the deal when contacted by Gulf News.
A Mubadala spokesperson, however, told Gulf News: “Mubadala’s role as an agent of economic diversification for Abu Dhabi means we are always looking for the right opportunities to invest in a number of sectors, and we found Investcorp to be a logical addition to our financial investment portfolio.”
Commenting on the deal, Khaldoon Khalifa Al Mubarak, Group CEO of Mubadala Development Company, said in a statement: “We welcome the opportunity to become a shareholder in Investcorp. From an investment perspective, the stable and long term value-creation mission of Investcorp makes it a logical addition to Mubadala’s diverse financial investment portfolio.”
With total assets of $10.7 billion, Investcorp provides clients with direct corporate investment and real estate investment opportunities as well as a broad array of liquid alternative investment solutions from its offices in London, New York, Bahrain, Riyadh, Doha and Abu Dhabi, according to the company. Investcorp is listed on Bahrain Stock Exchange.
Mubadala, on the other hand, has investments in a diverse group of companies including aerospace, oil and gas, utilities, real estate and infrastructure and information and communication technology. The total assets of the firm are $65 billion with operations across the globe.
This is a second major transaction for Mubadala in recent times. Earlier this month, the company has agreed to sell its 80% stake in Switzerland-based SR Technics to HNA Aviation, a global enterprise group based in Haikou, China. Mubadala, a shareholder since 2006, will retain a 20 per cent stake in the company.
Last month, Abu Dhabi government took a decision to merge Mubadala with International Petroleum Investment Company (Ipic) to create a larger industrial investment champion with global investment plans.
Mubadala posted a 12.5 per cent rise in profits last year on the back of high incomes from investments in health care, real estate and infrastructure activities.
Mohammad Mahfoodh Alardhi, Executive Chairman of Investcorp, said the development is a significant milestone for the company. “This investment is a validation of Investcorp’s blue-chip brand, our human capital, and our vision for the future. This is a positive step for our stakeholders, including our shareholders, investors and portfolio companies,” he stated.