UAE’s Ghitha invests $220m in Turkish cargo airline

Wam

• Ghitha aquires 44 percent stake
• Vote of confidence in Turkey
• Parent company revenue up 18 percent

Ghitha Holding, a subsidiary of Abu Dhabi conglomerate International Holding Company (IHC), has announced an investment of more than $220 million in Turkish cargo airline MNG.

The company said it has entered into a share purchase agreement to buy a 44 percent stake in MNG Havayollari ve Tasimacilik.

The deal was made through its wholly owned subsidiary Ghitha Aeroinvest Holding, it said in a filing to Abu Dhabi Stock Exchange.

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Ghitha said the acquisition “marks a significant stride” towards diversifying its portfolio and its ambition to become the largest company in the regional food trading sector.

The investment is also a significant vote of confidence in the Turkish economy, after the country was hit by a severe earthquake a year ago and continues to suffer from high inflation and penal interest rates.

Falal Ameen, group CEO of Ghitha Holding, said: “The integration of MNG Airlines into our portfolio represents a significant leap in our journey towards becoming a regional powerhouse in the food trading sector.”

‘Regional powerhouse’

Murathan Doruk Günal, chairman of MNG Airlines, added that the deal “opens up new horizons” in terms of operational capabilities and geographical reach. 

Ghitha Holding also has investments spanning food, agriculture, fish, dairy, poultry, vegetable oil, retail, distribution and catering services.

MNG Airlines, which was formed in 1996 and is based at Istanbul International Airport, operates cargo and logistics operations in Germany, England, France, the US, China, Italy, UAE and Kazakhstan, according to its website.

Ghitha’s parent company IHC on Tuesday reported preliminary revenue of more than AED60 billion ($16.3 billion) in 2023, up 18 percent on the previous year, while net profit was AED32.7 billion. 

IHC’s subsidiaries operate across a range of sectors, including real estate and construction, utilities, healthcare, food and agriculture, marine and dredging, AI and technology, hospitality and financial services.