Gargash Group, a UAE-based conglomerate, has initiated ownership for a 50.1% equity stake in Trakker Middle East LLC (TME), a subsidiary of TPL Trakker (TPLT).

The development was shared by TPL Trakker, a subsidiary of TPL Corp Limited, in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“In continuation to our announcement dated May 25, 2024, regarding the signing of definitive agreements between Trakker Middle East LLC and Gargash Group for the acquisition of a 50.1% equity stake in Trakker Middle East LLC, we are pleased to inform you that the process of transfer of ownership, as outlined in the agreement, has now commenced,” read the notice.

“We anticipate that the process, along with the share issuance, will be completed within the month of October and we are confident that this partnership will significantly accelerate our growth and strengthen our market position, paving the way for long-term success.”

Established in 1918, Gargash Group is one of UAE’s leading business enterprises, which comprises of internationally renowned brands operating across four verticals: automotive, real estate, financial services and F&B.

UAE conglomerate steps closer to purchasing TPL Trakker’s Middle East subsidiary

Earlier in May, TPLT Board of Directors authorized the company to sign a binding agreement with Gargash Group to acquire 50.1% equity stake in TME. The acquisition was to be executed through the issuance of new shares of TME

Back then, TPLT in its notice to the PSX stated that this strategic partnership and new equity injection in TME will “not only accelerate the company’s growth in Middle East but also provide an excellent platform to showcase our innovative IoT products to a broader audience”.

“By leveraging Gargash Group’s well-established market influence, we anticipate substantial growth and a strengthened market presence in the Middle East,” stated the company back then.

Last year, TPLT CEO Harris Jamali, told Business Recorder that its Middle East subsidiary has shown significant growth of 40% despite having a comparatively low workforce of around 35 people.

“TPLT’s Middle East subsidiary has been earning good foreign currency revenue,” Jamali said. “It works closely with Dubai police.