NEWS AND INSIGHTS

  • 23 Nov 2016

    Waha Capital extends maturity of collar hedges on c.19 million AerCap shares

    Abu Dhabi, 23 November 2016 -- Waha Capital, a leading Abu Dhabi-based investment company, has extended collar hedges on 18.89 million shares for up to 43 months approximately and further sold 4 million shares in New York-listed AerCap Holdings NV. AerCap’s share price was $ 45.46 at close of New York trading on 22 November 2016. These 4 million shares were acquired at an average purchase price of US$ 36.51 in an open market share purchase programme announced in January 2016.

    The transactions serve to continue Waha Capital’s strategy of hedging its equity market exposure, while generating cash to pursue its growth strategy.

    “Waha Capital is a long-term strategic investor in AerCap and we have decided to roll over our collar hedges to ensure that we can participate in potential upside in the coming years, while limiting our equity market risk,” said His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital.

    Earlier this year in August, Waha Capital extended the maturity for 3.97 million shares in AerCap for a period up to 25 months and also has in place an additional collar hedge for another 3.97 million shares.

    The net effect of these transactions is that Waha Capital has now locked in the value of its entire remaining portfolio of 26.85 million AerCap shares at an average minimum price of US$ 38.36 per share, while allowing for future upside participation up to an average price of US$ 62.01 per share. All of these collar hedges will now mature progressively over the 2018-2020 period.

    The sale proceeds were partly used to fund the extension of collar hedges on the 18.89 million shares and to pay down related debt. The remainder, which will be received by the company as a net cash payment of US$ 81 million, will be used to implement Waha Capital’s diversification and growth strategy, including expanding its asset management business.

    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. The company’s asset management business is offering credit, equity and private equity funds to third-party investors.

  • 10 Nov 2016

    Waha Capital reports net profit of AED 388 million for first nine months of 2016

    ABU DHABI, 10 November 2016: Waha Capital PJSC, a leading investment company based in Abu Dhabi (ADX: WAHA), has reported a net profit of AED 388 million for the first nine months of 2016.

    The company’s Capital Markets division produced a strong increase in income, with its credit and equities funds continuing to outperform. However, this was offset by lower income from some assets in the Principal Investments division.

    Waha Capital’s nine-month net profit was 17 percent lower than the corresponding period of 2015, while third-quarter net profit totalled AED 81.8 million, 30.6 percent lower than a year earlier.

    Commenting on the results, His Excellency Hussain Jasim Al Nowais, Chairman of Waha Capital said: “Waha Capital continues to be a highly profitable business, and our move into capital markets has produced strong returns, and diversified our assets and revenue streams. Meanwhile, our Principal Investments team remains focused on creating shareholder value across the portfolio. It is important to highlight that the company delivered a return on average of equity of 9.7 percent in the first nine months of the year which is an impressive figure especially given the current economic environment. We are confident that the company has the expertise, financial strength and the strategy to continue delivering a very solid return on equity, and to take advantage of attractive investment opportunities.”

    Salem Rashid Al Noaimi, CEO and Managing Director of Waha Capital added: “Our financial results this year demonstrate the value of our strategy of asset and revenue diversification, given that some of our direct investments are in cyclical sectors. In recent years, we have added capital markets investments to our asset mix, and these have grown quickly to account for a quarter of Waha Capital’s income. Our funds have an excellent track record of outperformance, and we are making good progress in offering our investment expertise to third-party investors. With a strong balance sheet in place, Waha Capital is focused on delivering steady and sustained growth in the coming years.”

    Total income generated by the Capital Markets division increased 33.3 percent to AED 223.4 million in the first nine months of 2016.

    The Waha CEMEEA Fixed Income Fund produced a total return of 16.8 percent during the period, the Waha MENA Equity Fund gave a total return of 7.8 percent, and the newly established Waha MENA Value Fund produced a total return of 13.4 percent.

    Total income from the Principal Investments division which includes portfolio companies AerCap, Dunia Finance, Waha Land, Stanford Marine Group and National Petroleum Services (NPS) reduced 13.4 percent to AED 417.9 million in the first nine months.

    Waha Land, a wholly owned company of Waha Capital, recorded a 14 percent rise in net profit to AED 17.8 million for the first nine months of 2016. The company has a AED 426 million financing package in place for further development of its ALMARKAZ light industrial real estate project, following the successful leasing of existing facilities.

    New York-listed aircraft leasing firm AerCap Holdings NV., in which Waha Capital owns a 16.97 percent stake, has reported a steady operating performance this year, but net profit has reduced primarily due to losses from its Aeroturbines business.

    Lower contributions were also reported from Dubai-based consumer finance firm Dunia Group and oil and gas services company Stanford Marine Group, which were both affected by challenging operating environments for their businesses.

    Total revenue at Anglo Arabian Healthcare (AAH), which is held as a seed asset by the Private Equity division, increased by 24 percent in the first three quarters of 2016, as the company continued to expand. AAH now owns 28 healthcare assets in the UAE, employing 900 people, and serving over 540,000 outpatients.

  • 9 Oct 2016

    Waha Capital appoints Alain Dib as Chief Operating Officer

    Abu Dhabi, 9 October 2016 – Waha Capital PJSC (ADX: WAHA), a leading investment company based in Abu Dhabi, has appointed Alain Dib as Chief Operating Officer, a role that involves leading the company’s investment businesses.

    Mr. Dib joins Waha Capital after a 20-year career at BNP Paribas, where he held senior investment banking positions, including in leveraged finance, acquisition finance, high yield debt and convertible bond origination. His last position was as Head of Equity Capital Markets for Europe, Middle East and Africa at the French bank.

    “Alain has senior international investment banking experience in all the major asset classes, and is therefore a perfect fit for Waha Capital,” said Salem Al Noaimi, Managing Director and Chief Executive Officer of Waha Capital.

    “The company has achieved above-market return on equity in recent years as we have pursued a strategy of diversifying our asset base and income streams. We are confident that Alain will achieve further success leading our talented investment teams.”

    Waha Capital’s investment business is structured into two divisions. Its Principal Investments division invests directly in several companies, including New York-listed AerCap Holdings NV, UAE-based Dunia Group, and National Petroleum Services, while its Asset Management division offers equity and credit funds to third-party investors.

    “I am excited by the opportunity at Waha Capital, because the company has established excellent multi-year track records in both direct investments and in capital markets,” Mr. Dib said. “We are therefore in a very strong position to attract third-party investors, while our strong financial position allows us to deploy further capital in both sides of the business.”

    Previously based in London, Mr. Dib was Managing Director, Head of Equity Capital Markets EMEA, for BNP Paribas and a Member of the Corporate Finance Management UK and CIB Management Committees. He had also headed the bank’s Restructuring and Advisory Group, the Distressed Finance Group, and was joint-head for the European High Yield Group.

    Mr. Dib previously also worked at Deutsche Bank as a Managing Director in its European Leverage Finance Group.

Share Price

12/8/2016 2:00:00 PM
Last
1.80 AED
Change
 0.01  (0.56%)
High/Low
1.82/1.79
Volume
6,769,364

VIDEOS

Waha Capital CEO & MD Salem Al Noaimi Interview with Prospect Group

 

  • 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.”