Arab Cotton Ginning Company further strengthens management after instigating new dividend policy
Arab Cotton Ginning Company (ACGC), Egypt's biggest publicly traded textiles holding company, has further strengthened its top management, a few weeks after instigating a new dividend policy based on high and sustainable dividend yields.
In September 2010, ACGC announced a dividend of EGP 0.95 per share representing a dividend yield of almost 26% on the share price at the time of announcement. The company also registered a significant increase in profits – the consolidated net profit of ACGC registered EGP 204.4 million at the end of June 2010 compared to EGP 28.8 million at the end of June 2009. Consolidated revenue also witnessed significant improvement marking a 33% year-on-year increase.
The company's stellar financial performance brings it into a strong pole position within Egypt's upbeat textile sector. In line with this development, the company has also decided to augment its top brass with the election of Mr. Ammar AlKhudairy as the new Chairman of the company. The announcement was made at an annual general meeting held in Cairo on 21st October 2010.
Mr. AlKhudairy is also the Managing Partner of Amwal AlKhaleej, a leading private equity firm in the MENA region, headquartered in Saudi Arabia with offices in Cairo and Dubai. Amwal AlKhaleej, controls a stake of more than 20% in ACGC since 2006 and has helped fuel ACGC's trajectory towards becoming a vibrant holding company.
Mr. AlKhudairy said: "I am honoured to take on the chairmanship of ACGC and appreciate the vote of confidence that its Board of Directors and former Chairman Hani Olama have given me. ACGC's successful journey is a testament to its longstanding vision of excellence. This vision has been instrumental in creating ACGC's reputation as a veritable textiles powerhouse in Egypt and, indeed, across the Middle East and the Mediterranean. Looking to the future, I am positive that the company will continue to achieve new milestones".
He added: "From Amwal AlKhaleej's perspective we are very happy with our partnership with ACGC. Amwal AlKhaleej focuses on sectors where it can create long term value, and the firm partners with regional companies that have strong, committed management teams seeking growth. Both these values are embodied in our relationship with ACGC and the company has reinforced our commitment to the growth model of private equity".
ACGC also appointed Ahmad El Bosaty, Chairman and Managing Director of Modern Nile Cotton Co. as its new Managing Director. Mr. El Bosaty commented: "My appointment coincides with a time when ACGC is poised to enter a new decade of exciting opportunities. ACGC aims to continue to maximize its market value for the sake of shareholders by sustaining liquidity levels through its investment portfolio and by realizing the value of its unutilized and highly valuable assets. This strategy will enable ACGC to sustain high dividends over the coming years in parallel to realizing high returns from the main activities of ACGC in the textile field. ACGC is almost debt-free which is another strong driver for us to maximize and monetize ACGC's assets to the benefit of its shareholders".
Mr. El Bosaty is also President of the Alexandria Cotton Exporters Association.
Arab Cotton Ginning Company
ACGC is restructuring into a holding company specialized in textiles and with a plan to expand across the textiles industry through organic growth, partnerships and acquisitions, while maximizing the value of its property portfolio.
Through the expansion of its Textiles Arm both horizontally, through additional capacity, and vertically, through product diversification, ACGC aims to grow its business locally and internationally within the next three years to reach over USD 500 million in turnover.
Amwal AlKhaleej is a premier private equity and investment firm in the Middle East and North Africa (MENA) region. The first private equity established and headquartered in Riyadh in late 2004, Amwal AlKhaleej has also offices in Dubai and Cairo. Seeded by prominent regional family offices, the company became fully owned and managed by its management team since 2013.