Seef Properties Shareholders Approve Stake Increase by GFH Unit
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Shareholders of Seef Properties, a Bahrain-listed real estate company, approved a transaction on Monday that will allow a GFH-backed investor to increase its stake to 50.07%.
The transaction involves Seef Equity Growth Investment, established by GFH Partners Fund Management, acquiring 95.1 million shares, which represents 20.67% of Seef Properties’ share capital. Upon completion, Seef Equity Growth Investment will hold 230.3 million shares in Seef Properties.
An extraordinary general meeting held on Sunday saw independent shareholders approve a whitewash resolution, a key requirement for the transaction. The resolution was passed under Article 213 of Bahrain’s Commercial Companies Law and Rule TMA-3.1.17 of the Central Bank of Bahrain’s takeover, merger and acquisition module.
Seef Properties reported a 36.9% year-on-year decline in second-quarter net profit to $2.4 million. The company attributed this decline to regional developments affecting its retail, leisure, and hospitality businesses, which weighed on consumer spending. Earnings per share fell 35% to $0.0056, and operating profit declined 20.1% to $6.1 million.
For the first half of 2026, net profit and comprehensive income attributable to shareholders fell 29.7% year-on-year to $7.2 million. The company's chairman, Essa Mohamed Najibi, noted that regional developments had impacted activity and spending in the company’s retail, hospitality, and entertainment businesses. He emphasized the company's focus on asset development, operational efficiency, and diversifying revenue.
Seef Properties CEO Ahmed Yusuf highlighted the company's ongoing implementation of its operational strategy, Al Liwan, which aims to support performance and drive growth.
GFH has committed to providing further disclosures on the transaction to ensure compliance with applicable laws and regulations.
CONTEXT: This development is significant as it marks a substantial increase in stake for a GFH-backed investor in Seef Properties, potentially influencing the company's strategic direction and operational focus. The approval comes amidst reported financial challenges for Seef Properties, which has seen declines in net profit and operating profit due to regional economic factors. The transaction and the company's strategic responses are closely watched by industry observers and investors.
