OEIHC to divest stakes in Dhofar Fisheries

22/06/2011 00:00 AST

Oman and Emirates Investment Holding Co SAOG (OEIHC) has announced that it plans to divest its entire stake in the loss-making Dhofar Fisheries Industries in favour of a prospective investor in the United Arab Emirates.

In a disclosure notification to the Muscat Securities Mark, OEIHC's Chief Executive Officer, Awad Mohammed Faraj Bankhalef, said the company has "accepted" an offer from the UAE investor whereby it would divest its 40.97 per cent equity stake at an enterprise valuation of RO 2.3 Million. However, the sale is subject to the approval of the Capital Market Authority and completion of related formalities, he added.

Salalah-based Dhofar Fisheries achieved a turnover of RO 2.177 million in 2010, compared to the previous years' earnings of RO 565K as at December 31, 2009. But it still ended up recording a net loss of RO 1.447 million compared to losses of RO 1.868 million recorded in the previous year representing a reduction of 22.5 per cent.

The company recorded an accumulated loss of RO 2,255,950 and the Net Equity stood at RO 286,290 as against the Share Capital of RO 2,540,000 as at December 31,2010.

In the first quarter of 2011, Dhofar Fisheries achieved a total turnover of RO 660,528, compared to RO 375,596 achieved during the same period of the last year. The net loss during the first quarter of 2011 was RO 312,427 compared to the net loss of RO 431,276 during the first quarter 2010. The accumulated losses carried forward amount to RO. 2,568,376 as on March 31, 2011.

In 2009, the Dubai-based firm ANC Holdings LLC announced a strategic acquisition of a 60 per cent majority stake from OEIHC in Dhofar Fisheries. ANC has diverse business interests particularly a rapidly growing foods division Freshly Frozen Foods (FFF Dubai).

Oman Daily Observer