Back to the complete issue
Thursday, 9 May 2019

Valentine CEO intends to acquire USD 37 mn stake in Maridive

UAE-based investor intends to acquire USD 37 mn stake in Maridive: Najjad Zeenni, the UAE-based investor, has announced his intention to acquire a stake in Maridive & Oil Services worth USD 37 mn, according to a company press release (pdf). Zeenni is also chairman of, and a minority shareholder in, Maridive subsidiary Valentine in Abu Dhabi

Transaction is at a premium to Maridive’s current share price: The move would see Zeenni, who currently owns a 25% stake in Valentine, agree to an effective share swap with Maridive, subscribing to a USD 37 mn capital increase at a price of USD 0.61 per share. Maridive’s closing share price on 7 May was USD 0.363 apiece. Maridive, a 75% shareholder in Valentine, would then use the proceeds to purchase an equivalent value of shares newly issued by the subsidiary. Zeenni would hold a total of 60,665,000 shares in Maridive, while Valentine would become 100% owned by the parent company. Zeenni’s Maridive shares would be subject to a lockup period.

Why the premium? Zeenni, a business partner of Maridive since 1990, says he wants exposure to the wider Maridive story at the same time as third-party research “points to a recovery in global offshore exploration and production spending,” the impact of which could be sharply felt in Maridive’s MENA home waters.

What’s next: The agreement is pending approval by Maridive’s management and shareholders as well as the usual CPs.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.