Bahraini financial investment company has stakes in various Abraaj-related funds directly and through its subsidiaries
Bahrain's Ithmaar Holding discloses exposure to embattled Abraaj Group
Bahrain's Ithmaar Holding has declared its exposure to private equity firm Abraaj Group, adding to the list of financial institutions with direct or indirect financial ties to the embattled firm facing allegations of misusing investors' funds.
Ithmaar Holding, the financial institution listed in Bahrain, Kuwait and Dubai, has stakes in Abraaj Holding and various Abraaj-related funds, directly and through its subsidiaries, it said on Sunday in a statement to the Dubai Financial Market.
The Bahraini company has a 1 per cent stake in Abraaj Holdings worth $15 million (Dh55.2m) through Abraaj Capital Co-Investors, a 5 per cent stake in the Infrastructure and Growth Capital Fund (IGCF), and 24.5 per cent shareholding in IGCF General Partner, it said.
Abraaj, once the Middle East’s biggest private equity firm, is near collapse after accusations that it mismanaged millions of dollars of investors’ funds. Court-appointed liquidators, who are seeking to settle more than $1 billion in debts, are weighing offers for Abraaj’s assets. Ithmaar Holding joins a growing list of companies that declared exposure to Abraaj over the last two weeks including First Abu Dhabi Bank and Emirates NBD.
Ithmaar Holding reported first-quarter net profit attributable to equity holders of $1.66m for the period ending 31 March, an 187.8 per cent year-on-year increase.