CURRENT INVESTMENTS
2003
AMWAL
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.amwal.co.qa
Country: Qatar
Sector: Financial services
Acquisition Date: May 2003
Transaction Size: $3.3 million
Stake: 16.9%
Company profile: Founded in 1998, Amwal is the first investment company to be licensed by the Central Bank of Qatar operating in three lines of business: investment banking, asset management and financial planning. The company launched the first investment portfolio and mutual fund investing in the Doha Securities Market and underwrote the first non-Qatari Initial Public Offering (IPO) in the country. Amwal has one of the largest investment teams in Qatar, employing more than 50 talented professionals. The firm benefits from a strong shareholder base including Abraaj, Qatar Foundation, Qatar National Bank and Qatar Navigation.
Acquisition structure: 100% financed through equity.
SOURCE: Abraaj Capital
2004 Spinneys Holdings
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.spinneys.com
Country: Levant, Egypt
Sector: Retail
Acquisition Date: April 2004
Transaction Size: $27.1 million
Stake: 35%
Company profile: Spinneys has long been established as the premier supermarket chain in the Middle East. Capitalising on its formidable brand equity and solid market position, Spinneys embarked on an aggressive expansion strategy. In Lebanon it currently owns and operates six hypermarkets and is one of the largest retailers in the country. More recently its first hypermarket in Egypt opened in a prestigious shopping mall in Cairo. We recognise that the brand has further potential for growth and envisage a two stage opportunity. The first lies in retail expansion both in the markets in which it currently operates as well as in other regional markets. The second lies in leveraging brand recognition and retail presence to become a distributor for Spinneys’ own label products thus occupying another lucrative segment of the retail value chain.
Acquisition structure: 100% financed through equity.
BMA Capital Management Ltd
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.bmacapital.com
Country: Pakistan
Sector: Financial services
Acquisition Date: May 2004
Transaction Size: $7.3 million
Stake: 50%
Company profile: BMA Capital Management Ltd (BMA) is one of the leading firms in Pakistan’s securities market and has been a corporate member of the Karachi Stock Exchange (KSE) since 1992. The firm provides a wide range of services with particular focus on capital markets and is one of the leading brokers in the equity, fixed income and inter-bank foreign exchange markets.
Acquisition structure: Purchase of a rights issue of 3.3 million shares by BMA, 100% financed by equity.
Arabtec PJSC
Vehicle: The Abraaj Real Estate Fund L.P.
Website: www.arabtecuae.com
Country: United Arab Emirates
Sector: Construction
Acquisition Date: August 2004
Transaction Size: $11.4 million
Invested Equity: $6.4 million
Co-investor Equity: $5 million
Fund’s Stake: $38 million
Company profile: Arabtec PJSC (Arabtec) was formed to invest in the construction sector through acquiring and owning shares in existing companies in the U.A.E. to benefit from the ongoing construction boom which is expected to continue over the next few years. In August 2004, 55% of the company was sold through an IPO and was 74 times oversubscribed. The remaining 45% is held by the founders of the company of which Abraaj is the largest external shareholder.
Acquisition structure: 100% financed through equity.
Septech Emirates L.L.C.
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.septechemirates.com
Country: United Arab Emirates
Sector: Water and wastewater
Acquisition Date: September 2004
Transaction Size: $12.8 million
Stake: 64.3%
Company profile: Founded in 1997 and headquartered in Sharjah, U.A.E., Septech’s main activity concentrated on packaged wastewater systems. Septech is currently active in water and wastewater related systems, products and services including water and wastewater treatment, landscaping and environment, pre-cast concrete products and marinas. Its activities span all market needs within its products range including consultation, design, manufacturing, installation, operation and maintenance.
Acquisition structure: Buyout of 100% stake at $12.8 million, financed by US$5.8 million of equity and $7 million in mezzanine debt.
The Dead Sea Conferences And Exhibitions Company
Vehicle: The Abraaj Real Estate Fund L.P.
Country: Jordan
Sector: Real estate
Acquisition Date: September 2004
Transaction Size: $2.1 million
Stake: 4.7%
Company profile: The Dead Sea Conferences and Exhibitions Company was established under the leadership of King Abdullah’s Fund for Development to promote the Dead Sea coast in Jordan. It has developed and constructed the King Al Hussein Bin Talal Convention Center on the Dead Sea coast near the Jordan Valley Marriott. The Center hosted the World Economic Forum from 2003-2005 and annually hosts a number of other major international and regional events.
Acquisition structure: Equity participation of $2.1 million.
SOURCE: Abraaj Capital
2005 Jordan Aircraft Maintenance Ltd
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.joramco.com.jo
Country: Jordan
Sector: Aircraft maintenance, repair, and overhaul (MRO)
Acquisition Date: January 2005
Transaction Size: $58 million
Stake: 80%
Company profile: JorAMCo is a well-established aircraft maintenance, repair and overhaul (MRO) provider operating out of Jordan with a solid track record, a range of relevant certifications and strong management. JorAMCo offers MRO services at competitive prices and at par with industry standards for quality and turn around time.
ACQUISITION STRUCTURE: Leveraged buyout structure financed by US$ 33 million of equity and $25 million of debt.
Maktoob.com
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.maktoob.com
Country: Jordan
Sector: Internet services
Acquisition Date: January 2005
Transaction Size: $5.2 million
Stake: 34%
Company profile: Maktoob is an internet portal based in Amman founded in October 1998 by Samih Toukan and Hussam Khoury as a spin-off from their previous consulting firm. The company provides a variety of free online services to its users including web based e-mail, chat rooms, an information portal and other services including prepaid online payment cards (CashU), online auctions and additional “premium” services for paying clients.
Acquisition structure: Capital injection of $5.2 million into the company, 100% financed by equity.
Marine Hospitality Holdings Limited
Vehicle: The Abraaj Real Estate Fund L.P.
Country: GCC, Jordan and Pakistan
Sector: Marine industry
Acquisition Date: February 2005
Transaction Size: $10.6 million
Stake: 45%
Company profile: Marine Hospitality Holdings Limited was established in Cayman in February 2005 with a subsidiary, ART Marine L.L.C. in the U.A.E., to exploit the boating and marina development potential in the region. ART Marine is the exclusive distributor of the Azimut and Atlantis luxury yachts in the GCC, Jordan and Pakistan. The luxury yachts are manufactured by the Azimut Benetti Group, which is the leading European manufacturer of motor yachts and the world leader in mega-yachts construction. ART Marine sells the yachts according to Gulf specifications and provides trade-in offers for those wanting to upgrade at a later date. Additionally, the company through its highly professional and experienced marine team, provides after-sales maintenance and service.
Acquisition structure: 100% financed through equity.
Twin Islands Project
Vehicle: The Abraaj Real Estate Fund L.P.
Country: South Asia
Sector: Real estate
Acquisition Date: February 2005
Transaction Size: $25 million (committed)
Stake: 30%
Company profile: Abraaj has secured an investment project involving the master-planning and development of approximately 350 acres of land off the immediate coast of a major city in South Asia. The development project will include residential, commercial and retail components developed to international high quality standards. Abraaj intends to sell off real estate units and land plots at a significant premium to investors and end users on a ‘freehold’ basis.
Acquisition structure: 100% financed through equity.
SOURCE: Abraaj Capital
2005 (continued)
ABANAR L.L.P.
Vehicle: The Abraaj Real Estate Fund L.P.
Country: United Kingdom
Sector: Real estate
Acquisition Date: April 2005
Transaction Size: $11 million
Stake: 33.3%
Company profile: ABANAR is a property fund incorporated in the UK which specializes in investing and developing niche market property opportunities in London and England. For a nominal fee, the three founding ABANAR investors (including Abraaj), have each also acquired a 25% stake in Swanbourne Development Services Ltd. (SDS), the ABANAR fund’s management company, with the remaining 25% held by the management of SDS.
Acquisition structure: 100% financed through equity.
Emirates International Holdings
Vehicle: The Abraaj Real Estate Fund L.P.
Country: United Arab Emirates
Sector: Real estate
Acquisition Date: May 2005
Transaction Size: $24.4 million
Stake: 34.5%
Company profile: Emirates International Holdings (EIH) is a newly incorporated company which will undertake the following investments: Palazzo Versace, Gold Coast – EIH has acquired a 50% stake in this premier hotel in Australia’s Gold Coast, Palazzo Versace, Dubai – EIH has undertaken a 50:50 joint venture with Sunland Group (SGL) of Australia to develop a Palazzo Versace and condominiums project as part of the Culture Village development at Dubai Creek D1, Dubai – Adjacent to the Palazzo Versace, EIH and SGL are co-developing on a 50:50 basis a landmark freehold residential tower project named D1. Emirates Financial Towers – EIH is also co-developing a landmark twin tower project at Dubai International Financial Center, which will be one of the first such projects to be completed at this unique financial free-zone.
Acquisition structure: Capital injection of $24.4 million, 100% financed through equity. Abraaj has acquired a 34.5% stake in EIH translating to two out of seven board seats.
Emirates Heights Development Company
Vehicle: The Abraaj Real Estate Fund L.P.
Country: United Arab Emirates
Sector: Real estate
Acquisition Date: September 2005
Transaction Size: $20 million (committed)
Equity: $7.5 million (to date)
Status: Unrealized
Stake: 50%
Company profile: Emirates Heights Development Company (EHDC) is a real estate development company incorporated in the UAE for the purpose of developing an integrated golf resort in the Emirate of Ras Al Khaimah named Tilal Resort, in English this translates to Dunes Resort.
Acquisition structure: $20 million in equity for a 50% stake.
SOURCE: Abraaj Capital
2006 Signature Clubs International Ltd
Vehicle: The Abraaj Real Estate Fund L.P.
Website: www.signaturegroupme.com
Region: MENASA
Sector: Real estate
Acquisition Date: February 2006
Transaction Size: $20 million (committed)
Stake: 80%
Company profile: Signature Clubs International Limited (SCI) is a company which will develop, own and operate private member clubs in the Middle East. It is planning to develop up to 12 business-oriented clubs in 5 years, with a potential for a further 10 clubs in predefined markets. SCI management is headed by two highly experienced operators of private clubs both locally and internationally who are in the advanced stage of implementing the SCI comprehensive business proposal. They are responsible for orchestrating all aspects of development and operation of the clubs.
Acquisition structure: Funding of each SCI club will include a combination of SCI equity, board members equity, debt and pre-sales of club memberships. SCI is assumed to retain 51% ownership of each club while the board of governors will hold the remaining 49% stake. Leverage and pre-sales are expected to substantially enhance investment returns in each club development. Abraaj has acquired an 80% stake in the company which will develop, own and operate the private clubs. The remaining 20% stake is held by the two shareholders / founding managers. Abraaj will invest equity to each SCI club in the form of acquiring redeemable preference shares. The annual profits for shareholders will be calculated on a consolidated basis after the redemption of the preferred stock to Abraaj. SCI will re-invest earnings into new club development before dividends are issued, with Abraaj receiving its invested capital back before the founding shareholders receive dividends, acting as a management real estate incentive to the effective development of the company.
National Air Services (NAS)
Website: www.nasaviation.com
Country: Saudi Arabia
Sector: Aviation
Acquisition Date: April 2006
Transaction Size: $177 million
Stake: 30%
Company profile: Establised in 1999, NAS provides a range of services to the private aviation sector, including its NetJets Middle East Fractional Aircraft Ownership and Leasing Programme, aircraft charter services, aircraft management solutions, and operation support and project management solutions. NAS operates and manages the largest fleet of private aircraft in the Middle East and one of the twenty largest worldwide. The company currently has a total of 28 aircraft of different types in its stable, including the largest fleet in the world of privately configured Airbus aircraft, along with Boeing, Gulfstream, Dassault and Raytheon models, and Twin Otter aircraft employed in its medical evacuation service.
ENSHAA Holdings (EHL)
Vehicle: The Abraaj Real Estate Fund L.P.
Country: United Arab Emirates, South Asia
Sector: Real Estate
Acquisition Date: May 2006
Transaction Size: $6.2 million
Stake: 50%
Company profile: ENSHAA Holdings (EHL) is a 50:50 joint venture company established by the Fund and Emirates Investment Group of Sharjah formed to undertake strategic real estate investments in Pakistan. In June 2006, EHL formed ENSHAA NLC Developments (Pvt) Ltd. (ENDL), a joint venture with National Logistics Cell (NLC) to develop a major office and retail development on I.I. Chundrigar Road in downtown Karachi.
Acquisition structure: Capital injection of US$ 6.2 million, 100% financed through equity. Abraaj has a 50% stake in EHL, which in turn holds a 51% majority stake in its Pakistan subsidiary ENDL.
SOURCE: Abraaj Capital
2006 (continued) EFG-Hermes
Website: www.efg-hermes.com
Country: Egypt
Sector: Financial services
Acquisition date: September 2006
Transaction size: $500 million
Stake: 25%
Company profile: EFG-Hermes is the Arab world’s premier investment banking firm and a market leader in securities brokerage, asset management, investment banking, private equity and research. Established in 1984, the firm represents a customer base of nearly 40000 clients from the Middle East, Europe and the United States. EFG-Hermes Asset Management currently manages 14 funds. Including portfolios, the total assets under management are currently around $2 billion. EFG-Hermes also manages almost $500 million in private equity assets. The company has offices across Egypt, United Arab Emirates and Kingdom of Saudi Arabia and employs 550 staff.
Mannan Shahid Forgings Limited
Vehicle: The Abraaj BMA Pakistan Buyout Fund L.P.
Website: www.msforgings.com
Country: Pakistan
Sector: Manufacturing of forged automotive parts
Acquisition date: November 2006
Transaction size: $13 million
Stake: 80%
Company profile: Maanan Shahid Forgings Ltd (MSF) is Pakistan’s largest steel forging house. MSF was established in 1974 and is an unlisted public company incorporated under the laws of Pakistan and employing a workforce of 844 people. It caters mainly to the booming automotive industry both domestically and abroad.
Acquisition structure: The shares of MSF were acquired and are held by a Mauritius-based entity created for the sole purpose of this transaction. The acquisition consideration was $13 million (100% equity financed) with balance sheet debt expected to be added in implementing post acquisition growth.
Other investments in 2006
Grand Serai Hotels and Resorts
Hospitality industry
40% stake
Oil & Gas Services sector investment
$21 million
70% stake
FMCG Manufacturing sector investment
$39 million
37% Stake
SOURCE: Abraaj Capital
2007 Ramky Infrastructure Limited
Vehicle: Sabre Abraaj India Private Equity Fund Limited
Website: www.ramky.com
Country: India
Sector: Infrastructure
Acquisition date: January 2007
Transaction size: $16.7 million
Stake: 8.1%
Company profile: Ramky Infrastructure Limited (Ramky) is a rapidly growing infrastructure construction and development firm based in Hyderabad, India. Ramky was incorporated in April 1994 and is the flagship company of The Ramky Group. The Ramky Group comprises of Ramky, Ramky Environ Engineers Limited, Ramky Estate and Farms Limited and Ramky Infra Consulting Private Limited and concentrates on construction, development, real estate and the financial sector. Ramky, which is the main source of revenue for the company, undertakes infrastructure projects mainly in buildings, water and wastewater, irrigation, roads, highways and bridges.
Acquisition structure: Ramky has completed a capital increase of a total $27.5 million. Of this total Sabre Abraaj subscribed to $16.7 million, with the balance being taken up by IL&FS Investment Managers Limited (IIML), one of India’s leading infrastructure finance institutions.
Air Arabia
Website: www.airarabia.com
Country: UAE
Sector: Aviation
Acquisition date: March 2007
Transaction size: $101 million
Stake: 17%
Company profile: Air Arabia was established in February 2003 by an Amiri decree. The company began operations in October of the same year. The airline has a fleet of nine Airbus A320 aircraft and serves 35 destinations across the Middle East, North Africa, Indian Subcontinent and Central Asia. Air Arabia is modeled after leading American and European low-cost airlines and is customised to local preferences. Its main focus is to make air travel more convenient through internet booking and offering the lowest fares in the market.
Egyptian Fertilisers Company (EFC)
Country: Egypt
Sector: Agriculture
Acquisition date: June 2007
Transaction size: $1.41 billion
Stake: 100%
Company profile: EFC was established in 1998 as a free-zone joint stock company in the Northwestern Suez Economic Zone, near Egypt’s Sokhna Port. The company, which operates two factories and employs approximately 600 staff, distributes its products worldwide. EFC’s main products are granulated urea and liquid ammonia, nitrogen-based fertilizers that are widely used in the agricultural industry in Egypt and abroad. Especially in the United States and Europe, demand for urea is increasing as a result of expanded production of biofuels such as ethanol.
Other investments in 2007
Education sector investment
Transaction size: $111 million
Stake: 25%
SOURCE: Abraaj Capital
EXITED INVESTMENTS
Inchcape Middle East
Vehicle: Cupola Group
Country: International
Sector: Diversified retail and distribution
Acquisition Date: April 1999
Transaction Size: $102 million
Exit Value: Gross capital gain of 16.3x equity on exited investments over a 3 year period
Company profile: Inchcape Middle East (IME) had been operating in the region for over 130 years, through 15 companies in 11 countries. The company had a unique and substantial portfolio of leading retailers, wholesalers, and distributors of food products, and fast moving consumer goods (FMCG), logistics services and oilfield services in the region. IME employed a total of 4,100 people. The company’s operating entities in the Middle East had over 220 exclusive sales agency agreements covering over 900 consumer brands and industrial products groups.
Acquisition structure: Leveraged buyout structure financed by ANZ Investment Bank, using $4.3 million in equity, $37.5 million redeemable convertible preferred shares, US$ 40 million of senior debt, $20 million in deferred payment bank guarantees.
Exit strategy: 10 companies were divested over a period of approximately 3 years for a total of $173 million primarily to strategic and financial buyers. Gross capital gain of 16.3x equity on exited investments over a 3 year period.
Aramex International Ltd.
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.aramex.com
Country: International
Sector: Logistics
Acquisition Date: February 2002
Transaction Size: $65 million
Stake: 100%
Company profile: Founded in 1983, Aramex was the region’s leading logistics and courier provider with a network of 132 offices in 34 countries. Aramex was the founding member and chair of the Global Distribution Alliance (GDA), which partnered with other regionally focused logistics firms to allow for a greater global presence. It was the first Arab company to list on NASDAQ (listed in 1997). With its comprehensive multi-product offering, Aramex had become a one-stop total transportation solutions company for retail and wholesale customers worldwide.
Acquisition structure: Leveraged buyout structure financed by $25 million in equity, $30 million in 5-year syndicated senior loan notes led by Export and Finance Bank, Jordan, and $10 million in mezzanine debt.
Exit: The company was sold in June 2005 through an IPO on the Dubai Financial Market.
ONIC Holding
Vehicle: The Abraaj Buyout Fund L.P.
Website: www.onicholding.com
Country: Oman
Sector: Insurance and financial services
Acquisition Date: May 2003
Transaction Size: $11 million
Stake: 16.7%
Company profile: Based in Oman, Oman National Investment Company (ONIC) was an investment holding company primarily engaged in the business of insurance and financial services through its subsidiaries and associates. ONIC’s subsidiary companies included: Al-Ahlia Insurance, National Life Insurance Co., and the Oman Investment and Finance Co. ONIC Holding was publicly listed on the Muscat Securities Market.
Acquisition structure: 100% financed through equity.
Exit: Abraaj sold its strategic interests to a regional financial institution 11 months after acquisition for a gross capital gain of 72% and at an IRR of 84%.
SOURCE: Abraaj Capital
Follow us on
