Abu Dhabi's IHC signs share swap agreement with Colombian businesses

IHC Capital will receive a 2.45% stake in Grupo Nutresa in exchange for its 1.64% stake in Grupo Sura

Grupo Nutresa. IHC Capital partnered with Grupo Nutresa, Grupo Sura and Grupo Argos last month. Reuters

International Holding Company has signed a framework agreement for a share swap with Colombian businesses as the Abu Dhabi conglomerate seeks to expand its assets in South America.

IHC Capital, a subsidiary of IHC, will receive a 2.45 per cent stake in Grupo Nutresa, one of the biggest food processing companies in Colombia, in exchange for its 1.64 per cent stake in Grupo Sura, a Latin American investment manager with investments focused on financial services.

Last month, IHC Capital partnered with Grupo Nutresa, Grupo Sura, Grupo Argos – a Colombian conglomerate with investments in the cement and energy industries, and other business shareholders.

“Thereafter, Argos and Sura will launch a tender offer, whereas any shares purchased through the tender offer in excess of 46,222,110 by Sura and Argos shall be repurchased by IHC in cash … at a price of $12 per share,” IHC said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The company made its foray into the Colombian market in October, when IHC Capital invested Dh734 million ($200 million) to acquire a 49.99 per cent stake in Lulo Colombia, the holding company of the country's first regulated digital bank, Lulo Bank.

IHC, one of the most valuable UAE companies, is completing all required procedures and obtaining all corporate and regulatory authorisations for the signed transactions, including the approval of the Colombian Superintendence of Finance, it said.

The company has investments in sectors including clean energy, food and agriculture, health care, real estate, information technology and artificial intelligence in nearly 20 countries across Asia, Africa, Europe, North America and South America.

The company reported a more than 63 per cent jump in its first-quarter net profit, driven by a strong performance across leading segments.

Net profit attributable to the owners of the company for the three months to the end of March reached Dh2.61 billion, up from Dh1.6 billion in the same period last year, IHC said.

Its revenue for the first quarter increased by 50 per cent to Dh15.7 billion.

IHC is expanding its portfolio by acquisition and investment as a strengthening dollar gives it more financial muscle.