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Fri 23 Dec 2011 05:10 PM

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Abraaj makes big profit on Turkish deal, says CEO

Dubai-based investment firm sees 'significant profit' from sale in Acibadem

Abraaj makes big profit on Turkish deal, says CEO
Arif Naqvi, Abraaj CEO

Dubai-based Abraaj Capital has made a "significant profit" from the sale of its stake in Turkish hospital group Acibadem, its CEO said on Friday.

"We've created the largest healthcare platform in emerging markets. The deal proves that despite two years of gloom globally, we managed to complete such an exit. We made a significant profit on our investment," Abraaj CEO Arif Naqvi told Reuters.

Integrated Healthcare Holdings (IHH), a healthcare unit of Malaysia's Khazanah Nasional, said in a statement earlier on Friday it had signed a conditional agreement to acquire 60 percent of the enlarged share capital in Acibadem.

IHH said acquisition will be paid partly in cash and partly in the form of newly issued IHH shares, which will see private equity firm Abraaj Capital emerge as a shareholder of IHH.

Abraaj previously held 46 percent stake in the joint venture company Almond Holding, which controlled 92 percent of Acibadem.

"We got paid 50 percent in cash and 50 percent shares in IHH. It's a significant minority stake with a board seat," Naqvi said.

Abraaj is one of the Middle East's biggest private equity firms, managing assets of over $6bn.

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Red Snappa 8 years ago

Being honest given the very real possibility of a secondary dip in liquidity, given that Europe is on gardening leave until some real meat is put on the bones of eurozone recovery plan, if it works? - then the cash in full would've been preferable to the shares.

Turkey wants to be in the EU, France is opposed to that, neither is on speaking terms now, the EU is in turmoil anyway and equities markets are immensely volatile because of the overall situation in Europe. Shares are considered profit for the very long haul right now, I suspect. I ask myself would I accept a remuneration package these days, a part of which is paid in share options, the answer - if I had a choice certainly not.