Waha Capital to pay 15% dividend to shareholders

Abu Dhabi-based firm reported Dh425.9m net profit, up 4.6 per cent on 2016

Abu Dhabi investment firm Waha Capital continued to build its asset management business in 2017 and make several lucrative deals, said chairman Husain Jasim Al Nowais. Silvia Razgova / The National

Waha Capital, an Abu Dhabi-listed investment firm, agreed a cash dividend of 15 fils per share after reporting a 4.6 per cent annual rise in net profit in 2017.

"Waha Capital continues to deliver a strong return on equity for its shareholders, and the company has consistently provided a robust dividend distribution," said Hussain Al Nowais, chairman of Waha Capital, in a statement on Monday.

The dividend to shareholders is equivalent to 15 per cent of its paid-up capital. Abu Dhabi’s Mubadala Investment Company has a 15 per cent stake in the firm.

Waha Capital reported a net profit of Dh425.9 million in 2017 – as the company continued to develop its asset management business and started a private debt business last year. The investment firm further diversified its principal investments portfolio and also made two divestments “that crystallised strong returns”, said Mr Al Nowais.

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Notable deals from 2017 included acquiring a stake in fintech firm Channel VAS for $55m, divesting from a healthcare diagnostics company and agreeing to sell a 20.2 per cent stake in Dubai’s National Petroleum Services to the Nasdaq-listed National Energy Services Reunited (NESR) in a cash-and-shares transaction.

Under that deal, completed this quarter, Waha is to receive Dh251m in cash and 5.5 million shares in NESR, issued at an initial value of $10 per share, and representing an interest of approximately 6.2 per cent in the company.

“Waha Capital is in a strong position to take advantage of attractive opportunities in all its areas of expertise, while ensuring deals meet our strict criteria on value and risk,” Mr Al Nowais said.

“At the corporate level, we will maintain our prudent financial management, with a focus on delivering value for our shareholders.”

The company’s annual general meeting is scheduled for March 25 at 4pm, Waha Capital added.