Stake sale of Drive Dubai generated 21 per cent return, company says
Dubai Investments offloads stake in Dubai driving school
Masharie, the private equity subsidiary of Dubai Investments, divested its 50 per cent stake in Drive Dubai (Dubai International Driving Centre) for Dh35 million, as it adapts its portfolio in line with longer-term growth plans.
The stake sale to unnamed investors generated an internal rate of return of 21 per cent, Dubai Investments said in a statement on Sunday to the Dubai Financial Market (DFM) stock exchange, where its shares are listed.
Masharie was one of the founding partners of Drive Dubai, now one of the biggest driving centres in the emirate, in December 2012.
The company owns an 850,000 square feet training facility in the Dubai Investments Park free zone, in partnership with local auto companies UAE Belhasa International Group and Saif Belhasa Group.
“Dubai Investments invested in Drive Dubai six years back, amid massive growth potential and demand for a comprehensive driving school within DIP,” said Khalid Bin Kalban, managing director and chief executive of Dubai Investments.
“Drive Dubai has grown phenomenally over the years, and it was a profitable exit for Dubai Investments."
Dubai Investments is on track with its strategy to “diligently adapt its portfolio and business verticals, with a clear focus on enhancing its investments in specific sectors”, Mr Bin Kalban added.
Dubai Investments is a diversified company in which sovereign wealth fund Investment Corporation of Dubai has an 11.54 per cent stake.
Masharie’s portfolio spans nine subsidiaries in sectors including aluminium extrusion, architectural aluminium designs, interior fit-outs, switchgears, lighting fixtures and laboratory furniture.