GIH released two announcements on the Bahrain Stock Exchange today regarding its sale of its remaining stake of 49.88% in BFH Company to Emaar, a Bahrain based investment company with its headquarters in Bahrain. You'll recall that at the end of 2007, GFH sold the buildings at the "heart of the BFH" to Emaar Bahrain for some US$425 million. At that time they buyer was described as a 100% Bahraini owned company.
The second contained financial information - that the contract was for US$262 million and that GFH's cash return was US$40 million plus some plots of land in the area of the BFH, which the Bank (GFH) intends to sell piecemeal. Presumably Emaar didn't think much of the land and so didn't want it. I'm guessing that the sale contract was for US$262 million and in return for its BFH Company shares, GFH got the valuable land (US$222 million) plus US$40 million in cash. Assuming that the land was transferred at book, then GFH would not have to recognize a loss on its sale. But note this is all speculation.
Anyone out there got an update on ownership of Emar or Emaar?
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