Waha Capital concludes divestment in AerCap gaining Dh40 million

The company has gradually reduced its stake in recent years to reallocate capital and enhance shareholder value

Abu Dhabi, United Arab Emirates, May 15, 2019.  Abu Dhabi stock images:  Buildings along Corniche.-
Victor Besa/The National
Section:  BZ

Waha Capital, which has Abu Dhabi’s Mubadala Investment Company as one of its shareholders divested its stake in AerCap Holdings with a net gain of Dh40 million.

A shareholder since 2010, Waha Capital gradually reduced its stake in the New York Stock Exchange-listed entity over the last few years to enhance shareholder value and reallocate capital in other investments. AerCap is a global aircraft leasing company. It acquires aircraft from manufacturers, airline operators, other aircraft-leasing companies and financial investors to lease to commercial airlines and cargo operators.

“This divestment is line with the turnaround strategy rolled out early this year,” the company said in a statement on Wednesday.

Waha Capital is currently pursuing a turnaround plan to set the company on a path of future sustainable growth and recently appointed a new chief executive, Amr Al Menhali in September.

In the third quarter of the year, the company reported total income of Dh5.5 million compared to Dh199.6m for the corresponding period last year. Following a reassessment of some of its investments Waha Capital suffered a net loss of Dh205m in that period, compared to a net profit of Dh 55.4m in the same period earlier. The loss was due in part to a write down of some of its investments, including the realisation of a Dh140m net loss on the sale of a 6.2 per cent stake in AerCap during the quarter for almost Dh1.6bn.

Waha Capital operates two business divisions. Its private investments arm which invests directly in high-potential companies and its asset management division, which invests in proprietary and third-party funds in globally-listed equities and credit. The company manages assets across several sectors including aircraft leasing, health care, financial services, energy, infrastructure, industrial real estate and capital markets.

The company had total assets of Dh10.61 billion as at September 30, 2019, down from Dh11.67bn at the end of 2018.

“The company has adopted a strategy to optimise and grow our investment portfolio, and to address asset-specific issues that have affected financial performance,” said Mr Al Menhali commenting on the financial results last month.