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Dubai Investments PJSC net profit surges to AED 805 million

August 3, 2014

Dubai Investments PJSC (DI) has announced that its net profit for the first six months of 2014 has surged to AED 805 million, an increase of 118 per cent compared to a net profit of AED 370 million for the similar period last year.

Announcing its financial results for the six-month period ended June 30, 2014, DI reported a consolidated total income AED 1.8 billion in the first half of 2014, as against AED 1.3 billion for the comparable period last year. Total assets as on June 30, 2014 stood at AED 13.5 billion, while net worth increased to AED 9.6 billion.

The annualised return on share capital achieved for the period was also higher at 42.1 per cent, compared to 21.5 per cent for the full year of 2013.

During the period, DI divested 66 per cent equity stake in its wholly-owned pharmaceutical subsidiary Globalpharma Co. LLC (Globalpharma) to an investor group led by Sanofi, a leading global healthcare company. The transaction contributed a profit of AED 472 million to DI, representing realised gain on disposal of controlling interest of AED 296 million and fair value gain on the retained investment of AED 176 million.

Mr. Khalid Bin Kalban, Managing Director and CEO of Dubai Investments, said: "We are quite pleased with the way 2014 has progressed so far. In Q1 2014, DI concluded a historic $300 million Sukuk issuance and now in Q2 we have successfully concluded a strategic divestment of 66 per cent interest in Globalpharma. These transactions have reinforced our position as a major player in the UAE business landscape and have placed us in a good position to capitalise on the available opportunities, and create further value for our shareholders."

"Our divestment in Globalpharma was well-timed as we capitalized on the rapid growth in the pharmaceutical sector in the region. With the direction and backing of DI, the management executed a successful strategy and created an opportunity for a lucrative divestment," Mr. Kalban added. 

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Source: CPI Financial

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