Arab Petroleum Investments Corporation (Apicorp) has bought 30 percent of Falcon Cement Co, Bahrain’s largest cement producer, to help to drive economic growth in the region, the development bank said on Monday.
The stake was bought from Islamic investment bank GFH Financial Group, which said it would remain a strategic shareholder in Falcon. The companies did not disclose the purchase price, but GFH has previously valued Falcon at $120 million.
Apicorp, a multilateral development bank established by the member states of the Organization of Arab Petroleum Exporting Countries, will act as a strategic shareholder supporting expansion of Falcon.
The cement company, which supplies big infrastructure projects in Bahrain, has production capacity of 1,000 tonnes per day and plans to raise that to 2,400 tonnes by the end of 2017.
Integrated Capital, part of the Abu Dhabi Financial Group, owns 10 percent of Falcon, having bought into the business earlier this year.
GFH has previously proposed an initial public offering (IPO) of Falcon shares on the Bahrain bourse, but Monday’s statement did not mention that plan and it was not immediately clear whether an IPO remains on the cards.