Following the approval of the Central Bank of Lebanon, OLT Holding s.a.l. owned by Mr. Ala Al Khawaja has successfully acquired from Mr. Ayman Hariri a 42.24% ownership stake of the share capital of GroupMed Holding s.a.l. The acquisition price corresponds to a total valuation of GroupMed Holding s.a.l at US$ 1,267,000,000 (one billion two hundred sixty-seven million US Dollars).
Post-acquisition, the majority of the share capital of GroupMed Holding s.a.l. is distributed as follows:
- Mrs. Nazek Rafic Al Hariri 15.51%
- H.E. Mr. Saadadeen Al Hariri 42.24%
- OLT Holding s.a.l. 42.24%
Mr. Al Khawaja is a prominent businessman, investor and board member of various international companies. Mr. Al Khawaja has more than 25 years of experience working and investing in the sectors of banking and finance, real estate, hospitality, telecommunications and across other industries in the region and abroad.
Commenting on the transaction, Mr. Al Khawaja said: “The investment by OLT Holding s.a.l. is regarded not only as an unwavering display of confidence in the privately-owned Bankmed s.a.l. but also as faith in the Lebanese banking sector, economy and permanent stability”. Mr. Al Khawaja also added “the acquisition will pave the way for increasing and diversifying the ownership structure of GroupMed Holding s.a.l which could result in an Initial Public Offering in the near future”.
In his turn, Mr. Mohammed Hariri, the Chairman of GroupMed Holding s.a.l, expressed that: “The acquisition is evidence of additional support to Bankmed s.a.l.’s long term strategy of promoting growth, performance and expanding its financial activities and ensuring the continuity of upholding Bankmed s.a.l values of protecting and serving its stakeholders”.
About Mr. Ala Al Khawaja:
Mr. Al Khawaja’s 25 years of experience serving in senior management roles and as a financial and strategic investor cover a diverse range of businesses across Europe, the United States and the MENA region.
In the field of banking & finance, Mr. Al Khawaja’s track record includes many successful transactions involving stakes in financial institutions such as Societe Generale (Egypt), Bank Audi (Lebanon), EFG Hermes Holding (Egypt) and Egyptian American Bank (Egypt). Other financial investments also include ownership in an UAE institution that provides financial advisory and research services, in addition to investments in European and US equity markets.
Mr. Al Khawaja’s investments expanded into telecommunications to include investments in Global Telecom Holding (Egypt) and in Orascom Telecom Media and Technology Holding (Egypt), a company, publicly listed on the Cairo Stock Exchange, which invests in entities operating in the GSM, media, technology, and cable businesses in Egypt, Lebanon, Pakistan, and other North African and Middle-Eastern countries.
Serving as Chairman and C.E.O. of InterContinental Hotels Co. which owns the Mövenpick Hotel in Egypt and additional properties on the Red Sea’s Egyptian coast, Mr. Al Khawaja’s hospitality investments and transactions also included the Four Seasons Hotel in Amman, Jordan.
Mr. Al Khawaja also heavily invested in most of Egypt’s privatization programs between 1996 through 2003 in transactions related to banking, heavy industries, hospitality, pharmaceuticals, telecommunication and other market sectors.
As part of his diverse investment portfolio, Mr. Al Khawaja retains a majority ownership stake in Al Arabia Cinema, a film media distribution and production company, which is based in Egypt and operates over 100 movie theaters. Mr. Al Khawaja additionally holds commercial and residential real estate properties across Egypt, Jordan, Lebanon, the UK and France.
About GroupMed Holding s.a.l:
GroupMed Holding s.a.l is a Lebanese company holding investments in banking, insurance, real estate, industry and services sectors located in seven countries within the Middle East and Europe.
About Bankmed s.a.l:
Bankmed is one of the leading banks in Lebanon, providing a wide range of corporate and retail banking and related financial services to individuals and private sector companies.
The principal activities of the Bank and its subsidiaries consist of conventional commercial and private banking as well as investment banking and wealth management through a network of 67 branches in Lebanon, one branch in Cyprus, three branches in Iraq, and one branch in the Dubai International Financial Centre (the “DIFC”). Bankmed became the first financial institution in the MENA region to operate in the DIFC under a Category 1 license, the most comprehensive license granted by the Dubai Financial Services Authority (DFSA).
In addition, the Bank has subsidiaries in Turkey, Saudi Arabia, Switzerland and Lebanon. These subsidiaries include (i) Turkland Bank (T-Bank), a Turkish bank providing banking services to the commercial business sector as well as to medium-sized enterprises. T-Bank is 50% owned and managed by Bankmed; (ii) SaudiMed Investment Company (SaudiMed), a wholly owned subsidiary based out of Riyadh, Saudi Arabia. SaudiMed provides an array of financial advisory and placement services in the areas of corporate finance, securitization and investment fund management; (iii) MedSecurities Investment, s.a.l. (MedSecurities), a wholly-owned subsidiary of Bankmed. MedSecurities provides agency, advisory and placement services. It offers financial and investment solutions out of Lebanon and the recently-established DIFC branch; (iv) Bankmed Suisse S.A. (Bankmed Suisse), a wholly-owned subsidiary of Bankmed based in Switzerland and offering private banking and wealth management services; and (v) Emkan Finance s.a.l. (Emkan), a wholly owned financial institution which started in May 2011 providing microfinance services to low income populations in Lebanon, which commenced operations in May 2011 and is wholly-owned by the Bank.
Towards the end of 2013 and in line with its expansion strategy in the insurance sector, Bankmed acquired an insurance company in Turkey. Similarly, in order to complement its product offering, the Bank acquired Continental Trust Insurance Company in Lebanon in 2014 and added insurance activities through entities in the UAE and the United Kingdom.
As at end of December 2016, the Bank and its financial services’ subsidiaries had 2,658 employees. According to the audited consolidated financial results, the Bank’s Total Assets stood at USD 16 billion as at end 2016, while the Loans & Advances and Customers’ Deposits reached USD 5.1 billion and USD 12.1 billion respectively. Bankmed recorded a Capital Adequacy Ratio of 15.4%, exceeding the Central Bank of Lebanon (Banque du Liban – BDL) regulatory requirements of 14% and a foreign currency liquidity ratio of 31.2%, far surpassing BDL’s requirement of 10%.