IHC’s Apex Holding signs sale and purchase deal with RAK cement company

RAK CIC will acquire the entire shares of IHC and Chimera Investments in Apex Holding through the issuance of bonds that will be convertible to shares

Abu Dhabi-listed International Holding Company aims to expand and diversify its business in a number of sectors. Ravindranath K / The National

Abu Dhabi-based International Holding Company’s subsidiary Apex Holding has agreed on a new sale and purchase deal with Ras Al Khaimah Cement Investment Company (RAK CIC) to help boost its growth.

RAK CIC will acquire all the shares of IHC and Chimera Investments in Apex Holding through the issuance of bonds worth Dh3.05 billion ($830 million), which are mandatorily convertible into shares in the company, IHC said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.

This agreement “will help drive Apex Holding's next phase of the growth plan”, Shehzad Janab, the company's chief executive, said. “The combined businesses will have a more diverse business offering and customer base than either individual entity.”

Apex Holding is a diversified business with investments in different sectors such as food and beverage, facility management, construction, IT and data analytics.

RAK CIC, a cement manufacturing firm, listed on Abu Dhabi bourse, serves customers in the UAE as well as in international markets.

“The proposed transaction provides an opportunity to strengthen RAK CIC’s financial performance through the robust financial position of Apex Holding,” Ahmed Al Nuaimi, general manager of RAK CIC, said.

“The resulting business will enjoy improved profitability, cash position and ability to raise financing thus improving utilisation of the excellent infrastructure of both entities”.

The transaction was approved by the board members of RAK CIC during a board meeting and is subject to regulatory approvals. RAK CIC’s name has also been changed to Apex Investment, according to the statement.

Separately, another subsidiary of IHC, Al Seer Marine, said it has launched a new business unit focused on 3D printing.

The unit will use "the latest additive manufacturing technologies for the company’s in-house manufacturing of unmanned vessels and vehicles", Al Seer Marine said.

The new division will also develop large-scale additive manufacturing products and parts that are in high demand regionally and globally.

The global 3D printing market was valued at $13.78bn in 2020 and is expected to grow 21 per cent annually from 2021 to 2028, according to Grand View Research.

With total assets of Dh6bn, Al Seer Marine provides various services including the manufacturing of vessels and yacht management.

Listed on the ADX since 2005, Abu Dhabi-based IHC, which is majority-owned by Abu Dhabi's PAL group of companies, has expanded its operations to include real estate, health care, food and agriculture. It has made a number of new investments in recent times.