Bahrain-based investment holding firm Gulf Finance House (GFH) has signed an agreement to sell 10 per cent of its stake in Bahraini cement producer Falcon Cement Company.
Integrated Capital (IC), a unit of alternative investment firm Abu Dhabi Financial Group, has agreed to buy the stake for an undisclosed amount, GFH said in a statement to the Dubai Financial Market, where its shares are traded.
The transaction is expected to have a positive impact on the companys cash flow, GFH said without giving further details.
The buyer has also expressed interest in underwriting the proposed initial public offering (IPO) of Falcon Cement Company, which is planned later in 2016 on the Bahrain Bourse and is still subject to internal and regulatory approvals.
Established in 2008, Falcon Cement Company produces Ordinary Portland and Sulphate Resistant cements. It has a current production capacity of 350,000 tonnes a year (t/y), which will be increased to 850,000 t/y when the second production line comes on stream by the end of 2016.