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Waha Capital ready to invest Dh550M in US-listed firms

Dubai - Investment firm pursuing vigorous turnaround strategy to position it for renewed growth: CEO

Abu Dhabi-based investment firm Waha Capital will invest $150 million (Dh550.5 million) in US-listed companies to expand its portfolio.
Listed on the Abu Dhabi Securities Exchange, Waha Capital invested $50 million in New York Stock Exchange-listed Latin American online travel firm Despegar.com for its private investment portfolio and it will also appoint a representative to the company's goard of directors as well.
"We are pursuing a vigorous turnaround strategy to position Waha Capital for renewed growth in the coming years. We are confident that investments such as the one we are making in Despegar will put us on a firm footing to deliver significantly higher future returns for our shareholders as we successfully navigate past the impact of Covid-19 and look to the future," said Amr Al Menhali, CEO of Waha Capital.
Under the deal, Waha Capital will invest in Series B preferred shares convertible into ordinary shares for an aggregate purchase price of $50 million. Despegar offers consumers, partners and travel suppliers a technology platform for managing the distribution of their products.  
Latin American online travel bookings are expected to accelerate in the coming years, once the effects of the Covid-19 pandemic have subsided.
Factors driving the growth in online travel bookings include the increase of Internet penetration, further adoption of smartphones, tablets and other mobile devices and a growing middle class with greater access to banking services and credit products, together enabling a larger segment of the population to transact online or on mobile devices.  
Waha Capital posted a net profit of Dh267.2 million in the second quarter of 2020 compared to a net loss of Dh124.4 million in same quarter last year. It recorded net loss of Dh27.2 million in the first half compared to net loss of Dh182.2 million in the previous period.
- waheedabbas@khaleejtimes.com