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Abu Dhabi, UAEWednesday 20 February 2019

Dubai Investments buys stake in Globalpharma to take full ownership

Globalpharma manufactures and markets pharmaceutical products in more than 14 countries across the GCC and Middle East

Khalid Bin Kalban, chief executive of Dubai Investments, says the purchase of Globalpharma is in line with company's strategic objectives. Randi Sokoloff / The National
Khalid Bin Kalban, chief executive of Dubai Investments, says the purchase of Globalpharma is in line with company's strategic objectives. Randi Sokoloff / The National

Dubai Investments, a diversified company in which sovereign wealth fund Investment Corporation of Dubai has a stake, increased its shareholding in Globalpharma, to take full ownership of the company.

Dubai Investments had a 34 per cent minority stake in Globalpharma before acquiring the additional 66 per cent in the company through Dubai Investments Industries, according to a statement filed with the Dubai Financial Market, where the company's shares are traded.

“We see the strategic benefit for making this acquisition,” said Khalid Bin Kalban, chief executive of Dubai Investments. “It forms part of the Dubai Investments growth strategy, and underscores our commitment to creating more value for our shareholders."

Globalpharma, which is based in Dubai Investments Park, manufactures and markets pharmaceutical products in more than 14 countries across the GCC, Middle East and neighbouring markets.

Dubai Investments' healthcare portfolio includes stakes in KCH Healthcare, Clemenceau Medical Centre, tie-ups with hospital operators such as NMC in Dubai Investments Park and Mirdif Hills.

GCC expenditure on health care is forecast to rise to $104.6 billion (Dh384.1bn) by 2022 from $76.1bn in 2017, at a compound annual growth rate of 6.6 per cent, according to Dubai investment bank Alpen Capital.

Dubai Investments reported a 33 per cent year-on-year drop in third-quarter net profit to Dh233.2 million.

Updated: February 7, 2019 04:06 PM

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