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Samena Capital, a principal investment group, has completed the landmark acquisition of 250 million shares of RAK Ceramics PSC, representing 30.6 per cent of the equity of the large ceramics maker. Financial details were not disclosed.
Under the terms of the transaction, Samena Capital, an investment firm managing about $700 million, would be represented on the board of RAK Ceramics, and the two companies would work together to use private equity strategies to unlock new growth opportunities.
Listed on the Abu Dhabi Securities Exchange, RAK Ceramics was established in 1989 and currently operates production facilities in UAE, India, Bangladesh, China, Sudan and Iran. The company sells its main products comprising ceramic tiles, sanitaryware and tableware in more than 160 countries with annual revenues of approximately $1 billion.
The acquisition was made through Samena Capital’s subsidiary, Samena Limestone Holdings, and its consortium of international investors, including two Gulf sovereign wealth funds. The shares were acquired from the ruling family of Ras Al Khaimah, who would continue to maintain a significant holding in the business, RAK Ceramics said in a statement.
Sheikh Mohammed Bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah, and Chairman of RAK Ceramics, said: ``This investment by Samena Capital heralds the start of a new and exciting chapter. Samena Capital brings a value-added network in our core markets, as well as international private equity expertise. This will add immense value to the organisation by sharpening our company’s long term business strategy.''
He added that given Samena Capital’s strong network among India’s top entrepreneurs and business industrialists, RAK Ceramics’ market position would be leveraged further to drive strong growth in India.
In 2007, RAK Ceramics started its production in Andhra Pradesh, and since then it has positioned itself among the premium brands in the Indian ceramics industry. Currently RAK Ceramics has an annual sales turnover of Rs 800 crore, with a production capacity of around 10 million sq.m. of tile per annum.
The company has recently invested in expanding its sanitaryware production in India with an increase from 1,000 to 2,500 sanitaryware pieces per day.
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