Finance House to allow 20% stake to foreign investors

Abu Dhabi Securities Exchange-listed Finance House will open 20 per cent of its shares to foreign investors, the company said yesterday. Finance House made the decision to amend its Articles of Association during its extraordinary general meeting (EGM) yesterday. \"On this occasion, I would like to invite investors from across the region and internationally to participate in the growth of Finance House, which has proven to be one of the fastest growing groups in the region,\" chairman Mohammad Abdullah Al Qubaisi said in a statement. \"Ever since inception, we have ensured creation of value for our shareholders, by offering them high returns on investments and by paying rational dividends that took into consideration micro and macro factors. We expect to keep up the same trend, which will ensure the best interest for them,\" Al Qubaisi added. Article continues below The shares of Finance House closed unchanged yesterday at Dh3.60. Tariq Qaqish, fund manager at Al Mal Capital, told Gulf News that the move would help attract foreign investors to the stock. \"The company has achieved a decent track record since its establishment, with a five year average return on equity of more than 20 per cent,\" he said. \"We, as market participants, would like to see more local companies open up to foreign ownership, which would attract a new type of investor to the UAE equity markets,\" Qaqish added. Finance House announced during the annual general meeting that it earned a net profit of Dh115.1 million for 2010. Its shareholders approved the payout of a cash dividend of 15 per cent and a stock dividend of 10 per cent. The principal activities of the company are commercial and retail financing, financial services and investments. It is licensed and regulated by the Central Bank of the UAE. The major shareholders of Finance House include The National Investor (TNI), a number of prominent UAE businessmen, high net worth individuals and dignitaries.