MANAMA, BAHRAIN: Esterad Investment Company has sold its investments in United Cement Company (UCC) amounting to BD 2.3 million to Saudi Cement Company.
The sale transaction is expected to reflect positively in the financial statements of the company during fourth quarter of 2019.
Esterad was one of the first companies in the Kingdom of Bahrain that contributed to the investment in the cement sector since its establishment in 1973 and then it contributed to the founding of Saudi Bahrain Cement Company which later merged with the Saudi Cement Company in 1976.
United Cement Company was established as a joint venture in 1999 between Esterad and Saudi Cement and later on Bahrain Bulk Handling Company joined as an additional shareholder in the company. UCC is the largest importer and distributor of wholesale cement and one of the leading forces behind the development of the building sector in the Kingdom. Till date UCC has sold more than 12.5 million tons of cement in Bahrain.
Commenting on the deal, Deputy Chairman of the Board of Esterad, Mr. Abdulrahinan Jamsheer said, “We are pleased to announce this profitable exit transaction from UCC, a company of a strategic nature for the Kingdom of Bahrain, in which Esterad was one of the founding shareholders. The investment achieved an IRR in excess of 50% over the 20 years of investment. The sale to Saudi Cement who are strategic partners in the company will help UCC to achieve higher operational efficiencies and future growth”.
Mr. Chandan Gupta, General Manager of Esterad said, “This exit is in line with the new strategy of Esterad to achieve higher profitability for shareholders. We have an exciting pipeline of new investment transactions wherein Esterad capital will be deployed in 2020”.