March 28 (Bloomberg) -- Gulf International Services QSC jumped the most in almost four years after the holding company announced an imminent acquisition and the chairman was cited as saying he seeks to double profits by 2016.
The shares soared 14 percent, the most since May 2008, to 26.70 riyals in Doha today, adjusted for a dividend of cash and shares. The benchmark QE Index added 0.2 percent. Gulf International shares traded without the right to a cash dividend of 1.18 riyals a share in addition to a 10 percent stock dividend, according to data compiled by Bloomberg.
The company expects its proposed acquisition of Amwaj Catering Services be completed “imminently,” according to a statement on the Qatar Exchange website yesterday. Gulf International is also seeking to boost profit to 600 million riyals ($165 million) by 2016, the Gulf Times reported, citing Chairman Mohammed Al-Sada, who is also Qatar’s oil minister. Net income was 300 million riyals in 2011.
“The stock is reacting to the acquisition announcement, and it’s overshadowing the dilution effect of the dividend,” said Marwan Shurrab, assistant fund manager and chief trader at Gulfmena Investments Ltd in Dubai.
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