Markets

UAE conglomerate enters into ‘strategic partnership’ with TPL Trakker

  • Gargash Group will be acquiring 50.1% stake in Trakker Middle East Limited
Published May 24, 2024

TPL Trakker (TPLT) has announced a ‘strategic partnership’ with Gargash Group, a UAE-based conglomerate, for a fresh equity injection in its associated company Trakker Middle East Limited (TME).

The development was shared by TPL Trakker Limited, a subsidiary of TPL Corp Limited, in its notice to the Pakistan Stock Exchange (PSX) on Friday.

“In continuation to our announcement dated March 11, 2024, we are pleased to announce that the Board of Directors has authorised the company to approve the fresh equity injection in its associated company Trakker Middle East Limited (TME) and to sign binding agreement with Gargash Group, which will be acquiring 50.1% equity stake in TME,” read the notice.

TPLT said that the acquisition will be executed through the issuance of new shares of TME.

Established in 1918, Gargash Group is one of the UAE’s leading business enterprises. Today, the group comprises a family of internationally renowned brands operating across four verticals: automotive, real estate, financial services and F&B.

The group has introduced leading global automotive brands into the UAE, including Mercedes-Benz, Alfa Romeo, GAC MOTOR, SIXT Rent Car, SIXT Leasing & SIXT Limousine.

Meanwhile, TPLT, a subsidiary of TPL Corp Limited and TPL Holdings (Private) Limited, is involved in installation and sale of tracking devices, vehicle tracking and fleet management services.

“This strategic partnership and new equity injection in TME represent a significant milestone for the Company which will not only accelerate the company’s growth in Middle East but also provide an excellent platform to showcase our innovative IoT products to a broader audience,” read the notice.

“By leveraging Gargash Group’s well-established market influence, we anticipate substantial growth and a strengthened market presence in the Middle East,” said TPLT.

“We are confident that this strategic partnership will significantly enhance our growth trajectory and market footprint, positioning our company for substantial success,” it said.

The Pakistani listed company shared that the transaction will be contingent upon approval of relevant regulatory authorities, the approval of the shareholders and entering into definitive agreements.

Last year, TPLT CEO Harris Jamali, told Business Recorder that its Middle East subsidiary has shown significant growth of 40% despite having a comparatively low workforce of around 35 people.

“TPLT’s Middle East subsidiary has been earning good foreign currency revenue,” Jamali said. “It works closely with Dubai police.

“The Middle East business showed 40% growth in the first half (of fiscal year 2023),” said Jamali, who joined TPLT in November 2022 as CEO. “And revenues are increasing.”

Comments

200 characters