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Press Coverage: Samena Capital agrees to buy 31% stake in U.A.E.’s RAK Ceramics

Source: The National

Ras Al Khaimah ruler sells shares in RAK Ceramics

April 29, 2014 Updated: April 29, 2014 20:26:00

The ruler of Ras Al Khaimah has sold 30.5 per cent of the shares in RAK Ceramics, the world’s largest maker of ceramic tiles to the private equity company Samena Capital.

Cayman Islands-based Samena Limestone, a subsidiary of London, Dubai and Hong Kong-based Samena, has agreed to buy 250 million shares equating to 30.5 per cent of RAK Ceramics from RAK ruler Sheikh Saud bin Saqr Al Qasimi the company said in an announcement to the Abu Dhabi bourse on Tuesday.

RAK Ceramics did not give a value for the widely tipped deal, but based on a share price of Dh3.83 at close on Monday, the stake was worth around Dh957 million.

The company also did not say whether Sheikh Saud bin Saqr Al Qasimi, who is also the RAK Ceramics chairman, would continue to hold other stakes in the company. Before the deal he was believed to hold about 45 per cent of the company’s shares.

RAK Ceramics shares rose 4.4 per cent on the news to close at Dh4.

In March RAK Ceramics said it had hired Barclays and BNP Paribas to explore “a range of strategic alternatives and transactions”.

“RAK Ceramics is the biggest tile maker in the world so Samena Capital will be very fortunate to acquire it,” said Hettish Karmani, senior manager for research at Global Investment House. “Private equity companies are known for their value additions. Such a deal would enable the company to be much more actively managed by a proficient private equity company.”

Like many Middle Eastern companies connected with the construction industry, RAK Ceramics was hit by the global financial downturn.

However, full year profits rose 22 per cent last year – the largest jump since 2009 – to reach Dh272 million as the company benefited from a construction and property boom and from improved efficiencies at its factories.

The company plans to spend about Dh300m this year on expanding in India and Bangladesh and on upgrading its existing operations in Ras Al Khaimah – up from Dh115m the previous year.

While the UAE contributes a small portion of its sales revenues – almost 85 per cent of its sales come from outside the country – the company’s largest market is the Arabian Gulf, with Saudi Arabia taking a major chunk of production.

The private equity company Samena, which has about US$700m of assets under management, was established in 2008 by Shirish Saraf, a former managing director of Abraaj Capital.

The company whose board includes Sheikh Nawaf Al Thani, the chief executive of Qatari business conglomerate Nasser Bin Khaled Holding; Samir Fancy, the chairman of the Omani oil and gas company Renaissance Services; and Ziad Al Turki, a vice chairman of Saudi Arabia’s Atco Group, invests in assets in the Indian subcontinent, Asia, the Middle East and North Africa.

Samena declined to provide further information on the deal.

RAK Ceramics added that the deal was subject to the approval of the Abu Dhabi Securities & Commodities Authority.

Source: Arabian Business

UAE royal to sell 30.6% stake in RAK Ceramics

By Reuters, Tuesday, 29 April 2014 1:45 PM

Ras Al Khaimah Ceramics said on Tuesday that its founding shareholder had agreed to sell 30.6 percent of his stake in the company to Samena Limestone Co, a company incorporated under the laws of the Cayman Islands.

Sheikh Saud bin Saqr al-Qasimi, a member of the ruling family of Ras Al Khaimah, which is one of the seven United Arab Emirates, has agreed to sell 250 million shares in the company, RAK Ceramics said in a bourse statement.

The ruling family had been exploring a sale of shares in RAK Ceramics, sources had told Reuters in March. The sale still needs UAE regulatory approvals.

Members of the al-Qasimi family own at least 45 percent of RAK Ceramics, one of the world’s biggest makers of floor tiles and also a major producer of ceramic wall tiles and sanitary ware, according to Thomson Reuters data.

RAK Ceramics did not reveal a selling price for the stake, or any information about Samena Limestone or what it intended to do with the stake.

RAK Ceramics’ last share price in the market of 3.83 dirhams values the whole company at about $852 million. The shares are up 34 percent so far this year after nearly tripling in 2013.

In an interview a month ago, the company’s chief executive Abdallah Massaad told Reuters that RAK Ceramics planned to invest $80 million this year on plant expansions in India and Bangladesh as well as technology upgrades at other plants. It has a listed affiliate in south Asia, RAK Ceramics (Bangladesh) .

Source: Gulf Business

RAK Ceramics Says Major Shareholder To Sell 30.6% Stake

By Reuters

Sheikh Saud bin Saqr al-Qasimi, a member of the ruling family of Ras Al Khaimah, has agreed to sell 250 million shares in the company, a bourse statement said.

Ras Al Khaimah Ceramics said on Tuesday that its founding shareholder had agreed to sell 30.6 per cent of his stake in the company to Samena Limestone Co, a company incorporated under the laws of the Cayman Islands.

Sheikh Saud bin Saqr al-Qasimi, a member of the ruling family of Ras Al Khaimah, which is one of the seven United Arab Emirates, has agreed to sell 250 million shares in the company, RAK Ceramics said in a bourse statement.

The ruling family had been exploring a sale of shares in RAK Ceramics, sources had told Reuters in March. The sale still needs UAE regulatory approvals.

Members of the al-Qasimi family own at least 45 per cent of RAK Ceramics, one of the world’s biggest makers of floor tiles and also a major producer of ceramic wall tiles and sanitary ware, according to Thomson Reuters data.

RAK Ceramics did not reveal a selling price for the stake, or any information about Samena Limestone or what it intended to do with the stake.

RAK Ceramics’ last share price in the market of Dhs3.83 values the whole company at about $852 million. The shares are up 34 per cent so far this year after nearly tripling in 2013.

In an interview a month ago, the company’s chief executive Abdallah Massaad told Reuters that RAK Ceramics planned to invest $80 million this year on plant expansions in India and Bangladesh as well as technology upgrades at other plants. It has a listed affiliate in south Asia, RAK Ceramics.

Source: Bloomberg Businessweek

Samena Capital Agrees to Buy 31% Stake in U.A.E.’s RAK Ceramics

By Dinesh Nair April 29, 2014

Samena Capital, an investment firm managing about $700 million, agreed to buy a 31 percent stake in Ras Al Khaimah Ceramics (RAKCEC) as the owners of the world’s biggest maker of ceramic tiles seek to raise funds.

Sheikh Saud bin Saqr Al Qasimi, ruler of the emirate of Ras al Khaimah, will sell 250 million shares to Cayman Islands-incorporated Samena Limestone, RAK Ceramics said today in a filing to the Abu Dhabi Stock Exchange, without disclosing a value for the deal. The stake is worth about 958 million dirhams ($261 million) based on RAK’s closing stock price yesterday, according to data compiled by Bloomberg.

RAK Ceramics said March 9 it hired Barclays Plc (BARC) and BNP Paribas SA (BNP) to explore “a range of strategic alternatives and transactions” after Bloomberg News reported that the banks are advising the ruling family, which rules one of the seven sheikhdoms in the United Arab Emirates, on the potential sale.

RAK Ceramics exports to more than 150 countries and posted a 21 percent increase in 2013 net income after improving production at its factories.

Today’s statement didn’t mention Sheikh Saud’s total shareholding in the company. Samena Capital wasn’t immediately available for comment.

To contact the reporter on this story: Dinesh Nair in Dubai at dnair5@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net Claudia Maedler.

Source: Front page of the economics section of Al Bayan

“RAK Ceramics has announced that its founding shareholder has agreed to sell 30.6% of the company, equating to 250m in a transaction with Samena Limestone, a company incorporated in the Cayman Islands.”