Qatar First Bank announces that with Ref No. W-M-77-2019, we inform you that under our letter sent to QFMA on 3rd November 2019 Ref No. No.IR/0112/2019, we notified QE and QFMA of the sale process immediately upon occurring. Despite we have earlier received a written offer from the acquirer, but more than once expressed his intentions not to proceed with the transaction, which called on the bank not to disclose until the signing of a binding sale agreement to avoid any disclosure that is not based on officially trustworthy information related to the solid intention of the acquirer. Consequently, we believe that we complied with the provisions of Article 5 of the Mergers and Acquisitions Law issued by QFMA.
As for Article 2.2, below is requested available details:1.The Company making the acquisition is called Toppan Gravity which is a Hong Kong based printing company. We don’t have information on its Board of Directors or capital as it is a privately held company.2.No P&L impact is expected following the consummation of the deal.3.The acquisition target is Future Industries Holding which owned 100% beneficial ownership in FutureCard Industries. FutureCard Industries is based in Sharjah and has a paid-in capital of AED 20m.4.We owned 71.3% of Future Industries Holding. Other shareholders included Nizar Rajjoub 23% and Omar AL Shamsi 5.7%5.Toppan Gravity acquired 100% of the Company for a total of US$ 14m and it also acquired QFB’s debt for ~US$ 12m.
The acquisition was funded through internal resources with no use of debt.
6.The acquisition was to create synergies and grow their business in the Middle East.
7.Future Card manufactures smart cards.
8.The exit enables QFB to reinvest the proceed in better suited investments
9.No conflict of interest arises from the transaction.
10.Future Card Industries Revenue & Net Profit: AED 2016 2017 2018 Revenue 111,762,000 94,593,000 112,192,000 Net Profit (1,326,000) (1,326,000) 2,349,000