Qatar First Bank Issues Complementary Disclosure about Selling a
Subsidiary
12 February 2020
With full
transparency and keenness on compliance with its rules and regulations,
Qatar First Bank has announced the disclosure of selling one its
subsidiary. Accordingly, you will find below all the data available on
the above sale in accordance with the requirements of Qatar Financial
Markets Authority pursuant to the provisions of Article 2/2 of the
merger and acquisition system:
As for Article
2.2, the following are the required data:
The company
making the acquisition is called Toban Gravity and it is a Hong
Kong-based printing company and affiliated to Toban Printing, which is
listed on the Tokyo Stock Exchange. The paid-in capital to Toban
Printing is JPY105 billion. The chairman of its Board of Directors is
Mr. Shinjo Kaniko, and the Managing Director is Mr. Hidhara Maru.
The sale was
made through FutureCard Technologies, a subsidiary of the bank. This
subsidiary company sold all of its shares in the Future Industries
Holding which has been established in Abu Dhabi International Market.
Whereas, the Future Industries Holding is a holding company whose sole
objective is to own 100% of the shares of Futurecard Industries, which
represents the operating asset of the acquisition. Futurecard Industries
is based in Sharjah, with a paid-in capital of AED 20 million and it is
one of the leading companies in the manufacturing of smart cards.
Qatar First Bank
owns 71.3% of FutureCard Technologies. The other shareholders of the
company are Mr. Nizar Rajoub, owning 23%, and Mr. Omar Al Shamsi, owning
5.7%. FutureCard Technologies owns 100% of the stocks of Future
Industries Holding.
Topan Gravity
acquired all of the bank's 71.30% stakes, as the offer was for all
shares or none.
The exit of
Qatar First bank was made with a total amount of £22 million. The goal
of acquisition is to grow and expand in the markets of the Middle East
region. The exit process was completed during October 2019.
Attached
herewith are the financial statements of FutureCard Industries, which
represent the operating asset of the acquisition. As for the acquiring
company, we do not have information regarding its board of directors as
we have been told that it is a private-owned company.
The value of the acquisition was
$ 22 million and the process was carried out and fulfilled through
internal sources without the use of debt or external financing. There is
no expected impact of the completion of the sale deal on the profit and
loss. However, it is expected that Qatar First Bank will benefit from
the liquidation of this investment by reinvesting it in other, better
liquidity-generating investments.
As it is common
in similar deals, the bank provided guarantees and bails equating around
$ 3.5 million. This deal does not have any conflict of interest.
As for the
revenues, the net profit and equity of shareholders of Futurecard
Industries will be as follows:
|
Qatari Riyal |
2016 |
2017 |
2018 |
|
Revenues |
QAR 110,644,380 |
QAR 93, 647, 070 |
QAR 111,070,080 |
|
Not Profit |
QAR (1,312,740 |
QAR (1,312, 740) |
QAR 2,325,510 |
|
Equity of Shareholders |
QAR 135, 807,773 |
QAR 134,007,001 |
QAR 135, 318, 486 |