Alabbar acquires Americana following a two-year marathon
One of the “crown jewels” of the Middle East: Mohamed Alabbar-led Adeptio reached an agreement to acquire a majority stake in Kuwait Food Company (Americana), ending a two-year process, Bloomberg reported. Adeptio will pay Al Khair National for Stocks and Real Estate KWD 2.65 (USD 8.80) per share for its 67% stake in Americana, a 26% premium over the closing price on Wednesday. “Adeptio will launch a mandatory takeover offer for the remaining shares of Americana at the same price,” Bloomberg writes. “We are delighted to have acquired one of the crown jewels of the Middle East … With its long and successful history as the leading food and restaurants business in MENA, Americana is uniquely positioned in the region,” Alabbar said.
Just last month, Americana had announced that the sale of the majority stake to Adeptio had been called off. In April, Citigroup withdrew from the group of banks providing a bridge loan to finance the transaction, with unnamed sources telling Reuters that “Americana’s business dealings in Iran had raised compliance concerns and was one of the reasons for the bank’s withdrawal,” Reuters reported at the time.
The Financial Times (paywall) also has coverage, saying the move provides a much-needed shakeup for a stagnant M&A climate in the region in light of oil prices. A “transaction of this size and complexity provides a timely shot in the arm for the high-end M&A market in the region,” said Mohammed Al-Shukairy, an M&A partner with Clifford Chance.
Goldman Sachs advised Adeptio, while Allen & Overy was legal counsel. Cairo-based law firm Sharkawy & Sarhan was advisor to Adeptio on matters of Egyptian law, including due diligence on Americana’s subsidiaries in Egypt and advising on the implementation of the agreement. “Rothschild advised Al Khair, which sought legal counsel from Clifford Chance. Standard Chartered Bank assisted in structuring the acquisition financing and joined Credit Suisse, Ahli United Bank, Emirates NBD, First Gulf Bank and National Bank of Abu Dhabi as mandated lead arrangers for the transaction.”