IHC’s Ghitha Holding acquires $211.2m stake in MNG Airlines

A subsidiary of Abu Dhabi’s investment giant International Holding Company (IHC), Ghitha Holding announced a major acquisition to propel its expansion in the logistics and aviation sectors.

Through its subsidiary Ghitha Aeroinvest Holding, the company has agreed to purchase a 44 per cent stake in MNG Airlines, a leading Turkish cargo carrier, for $211.2m.

This strategic move marks a significant step towards Ghitha’s goal of becoming the region’s largest food trading company.

The acquisition aims to strengthen the company’s logistical and distribution capabilities.

A key acquisition for Ghitha Holding

Ghitha Holding, already diversified across food, agriculture, and various food service sectors, views this acquisition as crucial for expanding its global supply chain reach.

“Integrating MNG Airlines into our portfolio is a pivotal moment in our journey,” said Falal Ameen, group CEO of Ghitha Holding. “This partnership expands our reach, strengthens our commitment to top-quality sourcing, and allows us to leverage MNG’s expertise to better serve our customers.”

Murathan Günal, chairman of MNG Airlines, echoed the enthusiasm, stating, “We are thrilled to join forces with Ghitha Holding, a company aligned with our vision. This collaboration opens new doors for us, and together we aim to set new benchmarks in the cargo and logistics sector.”

MNG Airlines has a range of specialised cargo services, including scheduled and charter flights, aircraft leasing, and technical services.

The transaction, subject to regulatory approvals, is expected to close in the first half of 2024.

In other news, IHC reported its preliminary unaudited financial results for 2023. The group’s preliminary revenue surged 18 per cent year-on-year to Dhs60.09 bn ($16.4bn), boosted by acquisitions and the strong performance of existing businesses.

Net profit remained robust at Dhs32.75bn ($8.9bn), while earnings per share more than doubled to Dhs12.36 ($3.40), reflecting the company’s profitability and shareholder value creation.

Read: IHC sees 18% revenue jump in 2023, as diversification pays off