RAK Ceramics buys up stakes in German and British units

RAK Ceramics has bought its remaining stakes in its UK and Germany units as the tile maker based in Ras Al Khaimah seeks to expand its footprint in Europe. The Abu Dhabi-listed company bought the remaining 50 per cent stake in its Germany subsidiary and the remaining 50 per cent stake in its UK arm, […]

RAK Ceramics has bought its remaining stakes in its UK and Germany units as the tile maker based in Ras Al Khaimah seeks to expand its footprint in Europe.

The Abu Dhabi-listed company bought the remaining 50 per cent stake in its Germany subsidiary and the remaining 50 per cent stake in its UK arm, the company said in a statement.

“We are confident in our ability to enhance margins in the long run and become a strong global competitor, strengthening our position within the ceramics industry around the world,” said the group’s chief executive, Abdallah Massaad.

RAK Ceramics exports 70 per cent of its production in the UAE, with the majority of exports going to Europe and Saudi Arabia.

Total net sales of tiles and sanitary ware to Europe reached Dh248 million in the third quarter of last year.

The company, whose largest shareholder is the private equity firm Samena Capital, which holds a stake of more than 30 per cent, last year bought out minority shareholders in both the Indian and Iranian subsidiaries, paying about Dh20.6m to acquire the remaining 10 per cent of its Indian business and Dh13.9m for 20 per cent of its Iranian arm.

Third-quarter profit at RAK Ceramics rose 43 per cent to Dh82.1 million as it boosted operating margins. The company’s shares closed up 1.9 per cent at Dh3.15 each.

dalsaadi@thenational.ae

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Source: Business

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