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Press Releases |
Damas Issues 40% (AED 521 million) to Strategic Investors Dubai, UAE - June 8th, 2005 - Damas LLC, the UAE's leading jewelry retailer and distributor, has completed a transaction for a 40% capital increase from 900 million to 1421 million to be taken up by a group of strategic investors that include Amwal Al Khaleej Co. of Saudi Arabia, SHUAA Partners, the private equity arm of SHUAA Capital, Al Fahim Group and Al Nasser Investments. Mr. Tawhid Abdullah, CEO of Damas stated: "The private placement generated tremendous interest and we received offers of commitments exceeding AED 1.5 billion, three times the amount we intended to raise. In the end, however, after very careful consideration, we chose to conclude an off-market transaction with strategic investors. We believe that the new shareholders, who share our vision to expand the business into Saudi Arabia and India among other markets, are professional long-term investors who will add significant value and help realize our strategy". It should be noted that the basis of valuation used in this private transaction was the same as to the one employed last year, when Damas considered a conversion to a joint stock company. Mr. Ammar Alkhudairy, Managing Director of Amwal Al Khaleej, said "The transaction was concluded after detailed negotiations and due diligence. We have signed a shareholder agreement and the Damas board of directors will be expanded to include two new directors, Mr. Mohamed Ali Al Abbar and Mr. Majid Saif Al Ghurair." He added that "We also will have an executive committee that includes Mr. Amir Abdul Jalil Al Fahim, Mr. Abdullah Nasser Al Huwailil and Saeed Hilal Al Darmaki. We have also agreed a joint venture in Saudi Arabia to be called (Damas Saudi)". Mr. Ibrahim ("Abe") Saad, Managing Director of SHUAA Partners stated: "This is the first transaction for our newly established fund, SHUAA Partners Fund I, L.P., which aims to seek out opportunities for investment in successful and promising private companies across the GCC. As active private equity investors, we help companies manage their financial and institutional resources more efficiently and more profitably." He added, "Damas has the potential to increase its earnings by at least 20% annually, capitalizing on its unmatched brand name and retail network, and building up shareholder value correspondingly." Damas LLC had a capital of AED 900 million and turnover of AED 2.1 billion. It was established in the UAE in 1959 and has grown to 185 stores in the UAE, GCC and Europe. The company sells fashion jewelry and high-end watches and enjoys alliances with many leading brands such as Tiffany & Co., Graff, and Saks Fifth Avenue and Parmigiani. Amwal Al Khaleej is an investment company based in Saudi Arabia and owned by Saudi and UAE shareholders. The size of its investment portfolio is SR 500 million. Amwal focuses on acquiring sizable stakes in privately held companies within the GCC, with an aim to eventually list such investments. SHUAA Partners Fund I, L.P., is a $150 million private equity fund that aims to achieve capital appreciation through selected direct equity, debt and/or equity-related investments in the GCC and neighboring countries, including pre-IPO situations. The fund is managed by SHUAA Partners the private equity arm of SHUAA Capital, a leading regional financial services company based in Dubai and listed on the Dubai Financial Market. Al Fahim Group is a prominent family owned organization based in Abu Dhabi. From its origins as a trading concern more than 50 years ago, the Al Fahim Group today stands as one of Abu Dhabi 's most distinguished and respected commercial groups. Al Fahim Group's diverse business interests encompass a broad spectrum of commercial activities.
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