GFH Financial sells 10 pct of Bahrain cement maker

DUBAI, March 22 (Reuters) - Islamic investment bank GFH Financial Group agreed to sell a 10 percent stake in Bahraini cement producer Falcon Cement Co to Integrated Capital, the capital markets arm of Abu Dhabi Financial Group, GFH said on Tuesday.

Integrated Capital also expressed interest in underwriting a proposed initial public offer of shares by Falcon on the Bahrain bourse later this year, GFH added without giving details.

Falcon, valued at $120 million, has an annual production capacity of 350,000 tonnes of cement, which is expected to rise to 850,000 tonnes with the launch of a second production line by the end of 2016, according to GFH’s statement.

Last month, Abu Dhabi Financial Group announced that Integrated Capital had raised its stake in GFH to 10 percent; the stake was 7.4 percent previously, data from the Dubai Financial Market showed. The Abu Dhabi group has about $3.2 billion in assets under management, it said at the time. (Reporting by Andrew Torchia; Editing by David French)