Multiply approves integration of Two Point Zero and Ghitha, boosts valuation to 28 billion euros

Madrid – Following the news reported by FashionUnited last week, an extraordinary General Shareholders' Meeting for Multiply Group, the parent company of Tendam, was held this Monday at its Abu Dhabi headquarters. The meeting was convened to address the complex financial transaction for the integration, via acquisition, of two Emirati companies by Tendam's parent investment holding. The companies are Two Point Zero, an investment holding specialising in technology, financial services, energy and AI; and Ghitha, a food industry conglomerate.

A large majority supported the seven items on the agenda. Most of these points related to the complex acquisition and integration of Two Point Zero and Ghitha by Multiply. The transaction required the backing of shareholders representing at least 75 percent of Multiply's share capital to proceed. According to Multiply's management, shareholders approved the increase in its Board of Directors from five to nine members during the meeting. They also passed all resolutions related to the purchase of Two Point Zero and Ghitha.

As previously reported by FashionUnited, these transactions will be formalised through a share swap rather than a cash payment. For this process, Multiply will issue 23.36 billion new shares. This will increase the company's share capital from 2.8 billion United Arab Emirates dirhams (AED) to 8.64 billion AED. Multiply's management asserts that this capital increase and the integration operations align with its strategy. The strategy aims to scale up the company, enhance synergies across its portfolio companies and generate sustained long-term value for both its balance sheet and its shareholders.

The deal is still subject to the necessary regulatory approvals, which are considered a formality. Once the transaction is complete and Two Point Zero and Ghitha are integrated into its portfolio, Multiply will emerge as a new investment giant. Its management estimates a total value of approximately 120 billion AED. This estimated figure is attributed to the new holding company resulting from these acquisitions. Its shares, diluted after the issuance of 23.36 billion new shares, are expected to be listed on the stock exchange from November 18, 2025.

The integration of Two Point Zero and Ghitha into Multiply is expected to be finalised by the beginning of next week. As a result of this process, and beyond the increased valuation of the investment holding, Multiply is projected to have annual revenues of approximately 14.10 billion AED. This figure is 593.8 percent higher than the company's current annual revenue of 2.03 billion AED. It will be achieved by combining Ghitha's estimated annual revenue of 5.13 billion AED and Two Point Zero's estimated annual revenue of 6.94 billion AED.

These revenues translate unevenly in terms of profitability. Multiply has an estimated annual net profit of 4.18 billion AED; Two Point Zero has an estimated 4.73 billion AED; and Ghitha reports losses of -64 million AED. These figures will result in an integrated holding company with a combined estimated net profit of approximately 8.85 billion AED. This represents a 111.62 percent increase in net profit over Multiply's current annual estimate. It is expected to help finance the Emirati group's ambitious growth strategies. In these strategies, Tendam is set to play a key role as the cornerstone of its new fashion and retail vertical. However, this division has had a negative start in Multiply's accounts. Despite an increase in turnover, it recorded a net loss of -5 million euros during the first two months of Tendam operating with Multiply as its new majority shareholder.

This article was translated to English using an AI tool.

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Acquisitions

Multiply Group

Tendam

United Arab Emirates