Multiply Group Proposes Strategic Acquisition of 2PointZero and Ghitha Holding: A Step Towards Enhanced Investment Portfolio and Sustainable Growth
Abu Dhabi, UAE – In a move aimed at amplifying its investment capabilities and enhancing operational synergy, Multiply Group (ADX: MULTIPLY), an investment holding powerhouse based in Abu Dhabi, recently announced a significant proposal to acquire two of its prominent subsidiaries, 2PointZero and Ghitha Holding. This strategic acquisition marks a crucial juncture in Multiply Group’s ongoing mission to fortify its market position while driving sustainable value creation long into the future.
The proposed acquisition is structured as a share swap transaction, wherein Multiply Group intends to exchange its shares to gain ownership of 2PointZero and Ghitha Holding. Following the agreement, Multiply Group is poised to issue additional shares to finalize the transaction. As it currently stands, the acquisition proposal is under regulatory scrutiny and awaits the requisite approvals from shareholders and governing bodies.
Complementary Strengths of 2PointZero and Ghitha Holding
2PointZero stands as a forward-thinking investment entity, boasting scalable assets across critical sectors such as energy, mining, and financial services. The firm has distinguished itself as a pivotal enabler of artificial intelligence and an accelerator of the energy transition, fostering a shift toward a more intelligent and sustainable economy. In tandem, Ghitha Holding emerges as a key player in the agricultural and food production sectors, addressing the pressing issue of food security—a goal of increasing relevance to an ever-growing global population.
The confluence of 2PointZero’s technological initiative and Ghitha Holding’s agricultural prowess promises to create a formidable force within the energy and consumer sectors. These sectors are foundational to our global economy, facilitating everyday life while propelling the transition toward renewable energy systems and sustainable consumer practices.
Operational Efficiency and Portfolio Strengthening
By consolidating the assets of these two companies under one umbrella, Multiply Group anticipates enhanced operational and investment efficiency across its diversified portfolio. This strategy not only optimizes existing resources but also strengthens the company’s capability to respond dynamically to market demands.
Syed Basar Shueb, the chairman of Multiply Group, articulated the significance of this transaction, stating, “This acquisition represents a natural evolution of our portfolio strategy, designed to optimize scale and enhance the platforms we have built over the years. Multiply’s offer to acquire 2PointZero and Ghitha Holding reflects our commitment to value creation and focuses on developing globally competitive entities that will yield sustainable returns for our shareholders.”
Ambitious Vision for Future Growth
Samia Bouazza, the Group CEO and Managing Director, echoed this sentiment, emphasizing the merger as a convergence of vision and resources rather than a mere balance sheet consolidation. “This strategic merger will culminate in the formation of an AED 120 billion balanced investment group with diversified interests spanning energy, food, logistics, packaging, mining, apparel, media, mobility, and beauty,” Bouazza stated. “With operations in 85 countries and a mission to serve one billion individuals, our goal is to propel organic and inorganic growth while leveraging artificial intelligence to unlock unprecedented value and deliver consistent returns to our stakeholders.”
Under the terms of the acquisition, Multiply Group is set to issue approximately 23.36 billion new shares, which will escalate its capital structure from AED 2.8 billion to a significant AED 8.64 billion post-transaction. Consequently, the consolidated entity will consist of approximately 34.56 billion shares, thereby marking a substantial growth in Multiply Group’s financial capacity for future endeavors.
Looking Ahead
While the transaction has sparked enthusiasm and optimism within the investment community, it remains contingent upon obtaining final approvals from shareholders and regulatory bodies. The anticipation surrounding the completion of this review process is palpable, as stakeholders await further details that will unfurl the full potential of this strategic initiative.
This acquisition by Multiply Group not only reiterates the company’s commitment to sustainable growth but also highlights its vision of creating an ecosystem that thrives on innovation, efficiency, and a shared commitment to addressing key global challenges, particularly in the domains of energy and food security.
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