Dubai-based financial services firm BHM Capital’s shareholders approved and ratified the acquisition of Core International Holdings’ investment arm Al Waqan Capital through a share swap agreement that will see it increase its issued capital to AED 5.02 bn, up from AED 173.4 mn, according to a DFM disclosure (pdf).

We knew this was coming: BHM said it would approve the acquisition when its general assembly meets this month, after its board proposed the share swap earlier in August.

Part of plans to become a holdco + diversify its portfolio: BHM Capital acquired the company in a bid to diversify its assets and expand into real estate and education assets, as well as boost its market cap and transition into a holding company, BHM Capital CEO Abdel Hadi Al Sadi told CNBC Arabia in an interview (watch, runtime: 6:40). The acquisition of Al Waqan adds real estate and education assets to BHM’s portfolio and boosts the size of the portfolio to AED 10 bn, Al Sadi said.

And list new segments on the ADX: The company plans to list its real estate segment on the ADX in the final quarter of the year or 1Q 2025, Al Sa’di said, adding that the education segment will similarly go public on the DFM. BHM Capital also plans to expand its financial segment into Egypt and Bahrain, with expansion into Egypt expected by the end of the year.

OTHER M&A NEWS-

ADIA expands its Indian investments: The Abu Dhabi Investment Authority (ADIA) invested INR 379.5 mn (AED 16.61 mn) in Indian solar cell manufacturer Premier Energies as an anchor investor ahead of its IPO, acquiring a 4.5% stake in the company, according to a filing (pdf). ADIA acquired the shares at a share price of INR 450 (AED 19.7).

The IPO will close on 29 August with a price range of INR 427-450 (AED 18.69 to AED 19.7) per equity share with a face value of INR 1. Other major investors include the Nomura Funds Ireland – India Equity Fund and Norway’s Government Pension Fund Global.

REMEMBER- The wealth fund spent nearly AED 3.67 bn on its Indian portfolio in 1H 2024 across five transactions. The most notable transactions include a AED 5.51 bn investment made alongside US private equity firm KKR in Indian Reliance Retail’s warehousing assets. It also entered a AED 881.52 mn quasi-equity agreement with Indian real estate development company Prestige, to develop residential projects worth AED 7.93 bn in India. Additionally, ADIA backed Indian retailer Purplle in a AED 440.76 mn funding round.

And there’s more to come: The sovereign wealth fund is also set to boost its holdings in the South Asian country with two anticipated investments, a 51% stake in Indian food brand Haldiram, valued at USD 4.76 bn, and a 10% stake in education loan provider HDFC Credila Financial Services. It’s also reportedly among the shortlisted bidders for the Indian government’s 23.15% stake in Indian telco Vodafone Idea.

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