ID :
57514
Sun, 04/26/2009 - 14:11
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https://oananews.org//node/57514
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ADNH to raise equity to Dh22bn
Abu Dhabi National Hotels (ADNH) is set to multiply its current Dh5.5 billion equity four times to Dh22bn within five years, a top official told Emirates Business. In an exclusive interview, CEO Richard Riley said the company is in the process of restructuring after the recent management changes with a strategic plan to grow its hotel portfolio along with other businesses.
The company has recently held its annual general meeting that approved the restructuring and appointment of a third party to evaluate ADNH accounting book as well as approving distribution of Dh200 million cash dividend among shareholders.
"The mandate of our chairman is very clear to me, and that is to strategically grow the business. We are setting about that. In essence our (Dh5.5bn) equity will double in the next two years. And our goal is to quadruple it the next five years. It is possible," he said.
Riley said the company will add 778 new hotel rooms to its hospitality portfolio in the middle of the next year. "In 2010, we have got Jumeirah Sofitel Hotel which is imminent. These are cash streams to work for us. We had a very good first quarter although it is unaudited, but everything shows signs of continued growth. When you look at five years in these schemes of things, you watch what happens in the next five years."
When asked about capital increase, he said ADNH was also in the process of evaluating its accounting book through a third party that has never previously done. Riley said: "Basically, what we did was we have lot of properties and we went out to Colliers International as an external firm to evaluate our value that we never had actually done it. There has been a book value but never gone out with a third party and done an official. There are a lot of reasons for that. As we grow the company there will be demands that we put on for cash.
"We need to go out and get financing. And obviously when having equity like this, we are talking about Dh5.5bn in equity, your advantage is for borrowing so that you can build the business to become easier.
"At the same time as equity to the books there is an up and down side to that. But the reality is that as a value to the actual company it has grown in value because we had through standard accounting practices we put back that value to the company. Now it makes my job just difficult because now we have higher value company that we have to grow that much more significantly." He also said the company will double its capital of Dh5.5bn within two years.
About restructuring of ADNH, Riley said: "We were automatically synergic. So we had these different businesses that come synergic – we needed a limousine operator so Al Ghazal was formed; we needed a catering operation so in the end the ADNH was formed. These things came about really because of synergy. When we review all the businesses there is synergic back to our core business which is hotels."
The company has recently held its annual general meeting that approved the restructuring and appointment of a third party to evaluate ADNH accounting book as well as approving distribution of Dh200 million cash dividend among shareholders.
"The mandate of our chairman is very clear to me, and that is to strategically grow the business. We are setting about that. In essence our (Dh5.5bn) equity will double in the next two years. And our goal is to quadruple it the next five years. It is possible," he said.
Riley said the company will add 778 new hotel rooms to its hospitality portfolio in the middle of the next year. "In 2010, we have got Jumeirah Sofitel Hotel which is imminent. These are cash streams to work for us. We had a very good first quarter although it is unaudited, but everything shows signs of continued growth. When you look at five years in these schemes of things, you watch what happens in the next five years."
When asked about capital increase, he said ADNH was also in the process of evaluating its accounting book through a third party that has never previously done. Riley said: "Basically, what we did was we have lot of properties and we went out to Colliers International as an external firm to evaluate our value that we never had actually done it. There has been a book value but never gone out with a third party and done an official. There are a lot of reasons for that. As we grow the company there will be demands that we put on for cash.
"We need to go out and get financing. And obviously when having equity like this, we are talking about Dh5.5bn in equity, your advantage is for borrowing so that you can build the business to become easier.
"At the same time as equity to the books there is an up and down side to that. But the reality is that as a value to the actual company it has grown in value because we had through standard accounting practices we put back that value to the company. Now it makes my job just difficult because now we have higher value company that we have to grow that much more significantly." He also said the company will double its capital of Dh5.5bn within two years.
About restructuring of ADNH, Riley said: "We were automatically synergic. So we had these different businesses that come synergic – we needed a limousine operator so Al Ghazal was formed; we needed a catering operation so in the end the ADNH was formed. These things came about really because of synergy. When we review all the businesses there is synergic back to our core business which is hotels."
