KUWAIT — Global Investment House has announced that its alternative asset management arm, Global Capital Management (GCM), concluded a successful exit from the controlling 93.27% stake in Jordan Trade Facilities Company (JOTF) owned by Global MENA Financial Assets Limited (GMFA), an investment fund managed by GCM, and associated companies. The transaction was completed last Sept. 6, generating a net amount of $29 million and a new board was elected on Sept. 22 to represent the new shareholder.
GMFA acquired a majority stake in JOTF in 2008, just a few months before the international financial crisis, which had a severe impact on the company’s performance and value as the company businesses were strategically shrunk to avoid being exposed to delinquent loans.
However, in the beginning of 2011, the management team of GCM implemented a restructuring program of JOTF operations. This program was focused on growth initiatives such as expanding the branch network, diversifying the product base, enhancing the quality of lending, strengthening the balance sheet position, diversifying finance sources from banks and capital markets, improving the corporate governance and implementing adequate ERP systems to be the leading consumer finance company in the Jordanian market. As a result, the loan portfolio, revenues, and profit before taxes grew substantially.
At the beginning of 2015, a new management team was hired to implement the growth strategy bringing with them extensive experience in retail banking. Consequently, results were crystalized instantly, with 160% growth in net profit, 16% growth of the loans portfolio and the distribution of 10% cash dividends in one of the most challenging periods for the sector in Jordan and the region in general. — SG
