By Santhosh V Perumal
Business Reporter
Salam International Investments (SIIL) is investing $3mn for its 10% stake in an investment bank, which is yet to start operations in Lebanon.
Issa: Growth plans
“We will be investing $3mn,” SIIL chairman Isaa Abdul Salam Abu Issa confirmed to the media yesterday while discussing the first-half results, which showed an 18% jump in net profit to QR81.15mn.
The board of directors had last week approved in principle the recommendation of the investment committee to participate in the incorporation and invest in Levant Investment Bank, in partnership with selected businessmen and corporations from Lebanon and other countries.
SIIL is one of the founding partners of the proposed bank with capital of $300mn.
The SIIL board had also approved the recommendation of the investment committee to participate in the capital increase of the Al Tajamouat Tourism Project Company.
Although it’s branded as a tourism project, Issa said it is a shopping complex and the company’s investment will be value addition to its existing business portfolio, especially in the retail sector.
“We would be picking up 7%-15% on the capital increase (proposed) and the investment could be in range of 5mn-10mn Jordanian dinar,” Issa said.
SIIL has also offered to buy 22mn additional shares of Salam Bounian, a private shareholding company with a paid-up capital of QR550mn, at QR8.5 a piece. SIIL has convened an ordinary general assembly meeting on September 21 to discuss the issue. In case the quorum is not met, the alternate date has been set on September 28.
Asserting that SIIL will continue adopting a conservative financial and investment policy, Issa said although it would keep options open on opportunities, the company would rather minimise expansion in the region in the short run on account of unrest.
In the long-term, SIIL will continue implementing a corporate strategy that targets sustainable and profitable growth through exploiting all available resources, expansion and extending regional growth.
Highlighting a three-pronged strategy in the long run, he said the company would seek to strengthen operating and capital profits from business units and subsidiaries as well as direct and indirect investment portfolio locally and regionally, and gains generated from real estate business.
“The company will depend on diversified operations and consequently profit resources with the aim to achieving balance and highest level of possible protection and to minimise the possible risk of economic downturns locally and regionally,” he said.
SIIL’s Total assets were valued at QR3.04bn comprising current assets of QR1.05bn and non-current assets of QR1.99bn. Total equity stood at QR1.59bn on a capital base of QR1.04bn and earnings-per-share was QR0.78 at the end of June 30, 2011.
