Dubai Group, the diversified financial services company of Dubai Holding, announced 18 May 2008 that it has acquired 49% of Egypt“s Sphinx Glass Company in partnership with Cairo-based private equity…
Dubai Group, the diversified financial services company of Dubai Holding, announced 18 May 2008 that it has acquired 49% of Egypt“s Sphinx Glass Company in partnership with Cairo-based private equity firm Citadel Capital. Dubai Group invested AED 730 million in the project through its subsidiary Dubai Capital Group to become the second largest shareholder in the greenfield project located 70 kilometers north of Cairo. The Sphinx Glass float facility will employ cutting-edge technology licensed from PPG Industries and will produce 220,000 tons of float glass per annum targeting both the domestic and export markets. Sphinx Glass is a wholly-owned subsidiary of GlassWorks, a company established by Citadel Capital and a group of leading regional investors to pursue investments in the promising MENA glass industry. Mustafa Farid Geninah, CEO of Dubai Capital Group, said: “Dubai Capital Group aims to own and build strong portfolio companies by concentrating on private equity, growth capital, “greenfield“ investments and long-term public equity holdings. Our investment in the Sphinx Glass plant reflects our strong belief in Egypt“s competitive advantage in the glass industry, not just within the region but also globally”. “Glassmaking in Egypt is a centuries-old industry, which is currently growing at a rapid pace. Investing with Citadel Capital in Sphinx Glass puts us in an ideal position to capitalize on this growth and will provide sustainable returns for our shareholders as part of our diversified investment strategy”. Sphinx Glass will produce glass in thicknesses from 2mm to 19mm primarily for use in the construction and automotive industries. Hisham El-Khazindar, Sphinx co-founder and managing director of Citadel Capital said: “The Middle East and North Africa“s abundant access to fuel resources and sand, the primary raw materials for glassmaking, is allowing the region to become a strong global glass producer. “The construction of Sphinx Glass“ 220,000 square-meter state-of-the-art plant reflects our strong belief in Egypt“s competitive advantage in the glass industry, and collaboration with global leaders such as Dubai Capital Group and PPG Industries is an exciting step toward fulfilling this strategy.” By focusing on strategic investments in public equity, greenfields, growth capital and leveraged buy-outs, Dubai Capital Group has become a leading private equity investor in the Middle East and North Africa region.