NEWS AND INSIGHTS

  • 4 Dec 2014

    Waha Capital enters into second hedging and financing transaction over 12 million AerCap shares, and sells 3 million shares

    Abu Dhabi, 4 December 2014 -- Waha Capital, a leading Abu Dhabi-based investment company, has sold three million shares in New York-listed AerCap Holdings N.V. (“AerCap”) and entered into its second hedging and financing transaction on its remaining unhedged shares in the world’s largest independent aircraft leasing company.

    The hedging transaction on the remaining portion of Waha Capital’s overall holding in AerCap -- approximately 12 million shares -- follows a similar transaction executed in September 2014 on half of its holding. The strategy limits downside equity market risk for Waha Capital, and provides the company additional funding to be used for further investments.

    Through the hedging transaction, Waha Capital has effectively locked in the value of 12 million AerCap shares at a minimum price of $37.11 per share, subject to certain adjustments. This transaction allows Waha Capital to benefit from share price appreciation in AerCap up to an average maximum price of $52.22 per share. This compares favourably to the original investment price of $13.00 per share and Waha Capital’s pre-transaction carrying value of $33.95 per share as of 30 September 2014. AerCap’s share price was $43.40 at close of New York trading on 1 December 2014.

    The company also concurrently sold three million shares in AerCap – representing 10% of Waha Capital’s overall holding -- through a block sale transaction. As a result, Waha Capital’s beneficial ownership in AerCap was reduced to 12.6 percent from 14.1 percent.

    Both the hedging transaction and the block sale serve to raise significant funds of approximately AED 2 billion ($532 million) for further diversification of the company’s portfolio while reducing balance sheet risk and lowering the company’s cost of capital. Waha Capital’s cash balance and available credit facility limit provides funding of approximately AED 3.5 billion ($950 million) for new investments and corporate purposes.

    Waha Capital reported a net profit of AED 1.6 billion for the first nine months of 2014, nearly a six-fold increase on the same period in 2013. Its leverage ratio currently stands at 22%, compared to 37% at the end of 2013.

    In addition to its stake in AerCap, Waha Capital invests in healthcare, energy, financial services, infrastructure and other high-potential sectors in the MENA region, as well as in global capital markets.

  • 9 Nov 2014

    Waha Capital nine-month net profit increases six fold reaching AED 1.6 billion

    ABU DHABI, 9 November 2014: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), reported a net profit of AED 1.6 billion for the first nine months of 2014, a near six fold increase on the same period in 2013 (AED 231 million). This was largely due to a one-off gain recorded in the second quarter as the company unlocked part of the value of its stake in AerCap.

    For the third quarter of 2014, the company recorded a net profit of AED 301.2 million, up from AED 107.1 million a year earlier, driven by strong contributions from the company’s stakes in AerCap Holdings NV and Dunia Finance LLC.

    In the third quarter, AerCap again made a strong contribution to Waha Capital’s earnings, as the New York-listed company recorded a 117.6 percent rise in earnings per share from a year earlier, due to its acquisition in May of International Lease Finance Corporation (ILFC). The acquisition has created the world’s largest independent aircraft leasing company.

    During the quarter, Waha Capital also entered into a hedging and financing transaction, as part of the company’s strategy to de-risk and to lower its cost of capital. This transaction involved hedging half of the company’s exposure to AerCap and raising approximately AED 2.1 billion (approximately US$ 575 million), which will be used to partially repay existing debt and to fund new investment opportunities.

    Commenting on the latest results, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital, said: “In recent years, we have delivered very strong return on equity, and so far this year Waha Capital’s performance has been exceptional. We are well positioned for growth and remain fully focused on creating further shareholder value and carrying out a prudent investment strategy. Thanks to an extremely strong financial base, the company is well placed to fully participate in, and benefit from, the robust economic growth in this region.”

    Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital said: “The company has significant capital at its disposal to fund future investments. Waha Capital has demonstrated a strong track record in pursuing attractive investment opportunities and expertise in adding value. We intend to develop our platforms in the high-potential areas of energy and healthcare in the coming years, building scale organically and through select acquisitions.”

    With the company reporting record earnings in the year to date, Waha Capital announced in September its intention to implement a share buy-back programme for up to 10 percent of outstanding shares, to allow its shareholders to directly benefit from the company’s continued profit generation. The programme was approved by the UAE Securities and Commodities Authority on 19 October 2014.

    Waha Capital’s assets stood at AED 9.3 billion as of the end of the third quarter, compared with AED 5.2 billion as at 31 December 2013. This was mainly due to the proceeds resulting from the hedging and financing transaction on half of the company’s shares in Aercap, followed by strong performance of Waha Capital’s portfolio companies and increase in public capital markets investments.

    Investments summary

    AerCap, in which Waha Capital owns a 14.1 percent stake, recorded a 117.6 percent year-on-year rise in earnings per share in the third quarter, with the increase largely attributable to the company’s acquisition of ILFC.

    As of 30 September 2014 the company owned, managed or was under contract to purchase a total of 1,676 aircraft, with an order book of over $25 billion.

    During the third quarter, AerCap signed lease agreements for 84 aircraft, delivered 26 aircraft under contracted lease agreements, purchased nine new aircraft, and closed the sale and part-out transactions of 15 aircraft.

    Dunia Finance, a UAE-based consumer finance company in which Waha Capital owns a 25 percent stake, continued to produce very strong results in the third quarter, with its loan book growing by 34 percent during this 9-month period to AED 1.4 billion, and customer deposits were up by 40 percent in the same timeframe to AED 722 million. The company had a customer base of 157,100 as at 30 September 2014.

    The Anglo Arabian Healthcare (AAH) Group, which was acquired by Waha Capital in mid-2013, continued to perform well, and is considering a number of potential acquisitions and is making steady progress on its greenfield hospital and clinic projects.

    Waha Capital booked a full quarter’s earnings contribution from National Petroleum Services (NPS) for the first time in the third quarter of this year, following its acquisition of a 20.56 percent stake in the company in June 2014. During the third quarter, NPS continued to position itself for long-term growth, particularly in emerging markets, and to make significant enhancements to the quality of its services. The company secured contracts worth AED 241.9 million during the third quarter, taking current contracts-in-progress to AED 2,706.8 million. Additionally, NPS invested AED 33.7 million in fixed assets in the third quarter, bringing the year to date additions up to AED 131.0 million.

    Stanford Marine Group (SMG), which charters and operates offshore supply vessels (OSVs), maintained stable performance in the quarter with its fleet of 41 vessels, achieving an average utilisation rate of 91 percent. SMG took delivery of two vessels during the first nine months of the year.

    The capital markets division at Waha Capital continued to develop through private transactions and increased investments in the public capital markets. The division has generated AED 235 million of revenue during the first nine months of the year.

    Waha Capital’s industrial real estate development, ALMARKAZ, continued to see strong leasing demand of remaining space in Phase 1 of the development due to the project’s high-quality infrastructure, strategic location, flexibility and scale. As of the end of the third quarter, over 70 percent of the 90,000 sq. m. of Small Industrial Units (SIUs) had been leased.

    Waha Capital continued to benefit from its stable investment as a sponsor and limited partner in the MENA Infrastructure Fund, a $300 million private equity infrastructure fund with assets spread across Saudi Arabia, Oman, and Egypt. Work to establish a second regional infrastructure fund continues.

  • 18 Sep 2014

    Waha Capital board approves share buy-back programme

    Abu Dhabi, 18 September 2014 Waha Capital, a leading Abu Dhabi-based investment company, announced yesterday its intention to implement a share buy-back programme for up to 10% of the outstanding shares of the company, allowing for the repurchase of up to 194 million of the company’s shares from the market.

    The share buy-back programme will be carried out on the Abu Dhabi Securities Exchange, and is subject to the approval and regulation of the Securities & Commodities Authority (SCA).

    Waha Capital’s Board of Directors approved the programme yesterday in a meeting chaired by His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital.

    Commenting on the programme, H.E. Al Nowais said: “Waha Capital’s aim is to continue to deliver shareholder value. The business has proven to be very solid, and has a healthy cash position. We have faith in the future growth of the company and are very confident in its ability to continue to deliver strong shareholder value. Our share buy-back programme will allow shareholders to directly benefit from Waha Capital’s continued profit generation.”

    Salem Rashid Al Noaimi, Chief Executive Officer and Managing Director of Waha Capital, added: “We are a profitable business with ambitious plans for future growth. Waha Capital has sufficient funds to continue investing in high potential areas in the region, and is therefore in a position to carry out a share buy-back programme that benefits shareholders.”

    The share buy-back programme will be carried out within 12 months of approval by SCA, with purchased shares held by the company as treasury shares. In accordance with SCA regulations, the shares must be sold by the company within two years from the date of the last purchasing transaction.

    Waha Capital recorded a first-half net profit of AED 1.3 billion – a nine-fold increase from a year earlier. The company has also raised US$575 million this month through a hedging transaction on half of its stake in AerCap, with the proceeds being used to make further investments and pay down debt.

Share Price

12/22/2014 2:00:00 PM
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VIDEOS

Waha Capital CEO & MD Salem Al Noaimi announces New Healthcare Investment

 

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  • Waha Capital CEO & MD Salem Al Noaimi announces New Healthcare Investment

    “Waha Capital today announced a new investment in the healthcare sector through its acquisition of Anglo Arabian Healthcare (AAH), a healthcare group with investments focused on the Northern Emirates and Abu Dhabi. One of the objectives of this investment is to diversify Waha Capital’s sources of income, in line with our business strategy which we formulated 4-5 years ago. We have thankfully succeeded in implementing this strategy, and this investment complements it.

    Entering the Healthcare sector is very important to Waha Capital as it holds high growth potential and is a government priority for the UAE. We will look to increase our investments within this sector in the next three to five years, and plan to make this sector a greater contributor to Waha Capital’s revenues.”