By Staff writer
State investment fund also considers sale of chipmaker Globalfoundries as part of wholesale portfolio review
Abu Dhabi investment fund Mubadala is undergoing a review of its portfolio, with a view to selling off stakes or listing some parts of its business, according to Bloomberg.
The newswire said that the fund was considering the sale of Swiss aircraft maintenance business SR Technics, the sale of a stake in US chipmaker Globalfoundries and an initial public offering (IPO) for its satellite communications firm Yahsat, according to four people with knowledge of the matter.
Bloomberg reported that talks took place with potential buyers for all or part of Globalfoundries last year, while discussions over the sale of SR Technics took place in 2014.
Abu Dhabi’s budget deficit widened from 7.2 percent in 2014 to 13.2 percent last year, prompted by a drop in oil and gas income. Ratings agency Fitch said it expected the deficit to decline to 11.6 percent of GDP this year, and to 5.3 percent in 2017.
Earlier this month, Fitch projected that the Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is expected to see its assets decline by just over 5 percent this year.
"As an active investor across multiple sectors, we are continually looking at ways to manage our portfolio in line with our long-term vision and mandate to help drive the diversification of Abu Dhabi," Mubadala spokesman Brian Lott told Bloomberg.
Mubadala’s portfolio includes a range of stakes in blue-chip firms around the world, including GE and the Carlyle Group. The fund’s assets are valued at $65.9 billion, according to its website.