Multiply Group, an Abu Dhabi investment holding company, has submitted a binding offer to buy a 55 per cent stake in Dubai-based outdoor advertising company Media247 for Dh184 million ($50 million).
Media 247 offers media management, printing and special project services and has long-standing partnerships with advertisers locally and internationally, Multiply Group said in a statement to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.
Its assets include more than 45 exclusive outdoor premium hoardings, unipoles and 3D structures spread across key locations in Dubai. The company also provides transit media solutions such as vehicle wraps across Dubai’s taxi fleet.
The investment in Media 247 "falls under the buy and build vertical strategy of acquiring profitable companies, creating portfolio-wide synergies, investing in bolt-on acquisitions, augmenting scalability and enhancing their margins", Multiply said.
“Our commitment to invest in Media 247 reflects our focus on the growth of Multiply Group’s media and communications vertical and the consolidation of assets in the out-of-home media space," said Jawad Hassan, head of media and communications vertical at Multiply Group.
"Together, we will be focusing on growing the company both organically and inorganically."
The latest deal comes as Multiply, a subsidiary of Abu Dhabi's International Holding Company (IHC), continues to expand its portfolio.
The company has been investing across its two units: Multiply and Multiply+.
Multiply operates and invests in four verticals, including mobility, energy and utilities, media and communications, and beauty and wellness. Multiply+, its sector-agnostic investment arm, seeks to target double-digit returns across several asset classes.
Multiply's investments include stakes in businesses such as Emirates Driving Company, Viola Communications, Abu Dhabi National Energy Company, better known as Taqa, the Dubai Electricity and Water Authority, Borouge and Getty Images.
Last year, it invested Dh92 million in musician and businesswoman Rihanna’s intimate apparel venture Savage X Fenty. It also bought 80 per cent of shares in IHC subsidiary International Energy Holding in October.
Multiply was added to the S&P UAE BMI Liquid 20/35 Capped Index and S&P UAE Shariah Liquid 35/20 Capped Index in the third quarter of last year.
The indices measure the performance of the S&P UAE BMI and the most liquid and Sharia-compliant stocks in the UAE, respectively.
The company was also added to the Chimera S&P UAE UCITS ETF and Chimera S&P UAE Shariah ETF.
"Our company was already on a fast track to achieve our objectives with rapid growth, and this partnership will enable us to further widen our offerings ... and broaden our network in the UAE and beyond," said Rafiq Hijleh, founder and president at Media 247.
The deal is subject to regulatory approvals and completion of the formalities, according to the statement.
