Majid Al Futtaim Holding aims to double profit in five years and is weighing an offer to acquire Abu Dhabi consumer finance firm Dunia Finance as part of the plan, according to chief executive Alain Bejjani.
“Dunia is an opportunity that was presented to us, so we are looking at it,” Mr Bejjani said in Dubai. The company has not yet decided whether to make a formal bid, he said. Dunia’s shareholders, including Mubadala Development and a unit of Temasek Holdings, hired Morgan Stanley to explore a sale, people with knowledge of the matter said in July.
Mr Bejjani, 42, who became chief executive in February after roles including chief corporate development and brand officer, said acquisitions could be part of MAF’s expansion. Buying privately owned Dunia would be a strategic fit for Majid Al Futtaim’s finance unit, which caters to customers at the group’s malls, he said.
He said the company is targeting a 100 per cent increase in profit, revenue and gross lease-able area over the next five years, mainly through organic growth. Majid Al Futtaim operates 18 shopping malls across the Middle East, including Mall of the Emirates, which features the region’s first indoor ski slope.
MAF has made several acquisitions since it was founded in 1992 by Emirati businessman Majid Al Futtaim. In 2013 it bought Carrefour’s 25 per cent stake in its Middle East joint venture for €530 million, giving the Dubai-based company full control of the Carrefour stores across the Middle East, Africa and Central Asia.
It also acquired a stake in UAE-based mobile payments company Beam Wallet at the end of 2014 for an undisclosed amount, and paid US$77m to buy out Australia’s Amalgamated Holdings from its cinemas joint venture in the Middle East in 2010.
“We have done deals in the past to consolidate our ownership in some of our assets as we are focused on creating value and owning and mastering the experience” of our customers, Mr Bejjani said.
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