Font Size

- Aa +

Thu 10 Jan 2019 08:30 AM

Font Size

- Aa +

Struggling Abraaj gets 70% of Nigerian firm by converting loan

Abraaj is being restructured by liquidators in a bid to settle more than $1 billion of its debts through asset sales

Struggling Abraaj gets 70% of Nigerian firm by converting loan
Abraaj, once one of the most high-profile private equity companies in the Middle East until its dramatic failure last year, is being restructured by liquidators in a bid to settle more than $1 billion of its debts through asset sales.

Abraaj Group, the private equity firm that collapsed after defaulting on debt, will get a 70 percent stake in C&I Leasing Plc by converting a $10 million loan into equity in the Nigerian company.

“Abraaj knows that pulling out $10 million will be detrimental to the growth of the business, so rather than cash out, they decided to convert,” C&I CEO Andrew Otike-Odibi said by phone from Lagos.

Once done, C&I plans a rights issue or an initial public offering that may dilute Abraaj’s stake to about 30 percent, he said.

Abraaj, once one of the most high-profile private equity companies in the Middle East until its dramatic failure last year, is being restructured by liquidators in a bid to settle more than $1 billion of its debts through asset sales.

The firm’s Lagos office didn’t respond to an email seeking comment.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.