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Thursday, 15 October 2020

ADQ Holding could be in the running to close out a major acquisition of Atyab

M&A WATCH- ADQ Holding could be in the running to grab a majority stake in Ismailia for Agricultural Investments: Emirati state-owned investment firm ADQ Holding — formerly known as Abu Dhabi Development Holding — has reportedly submitted an offer to purchase a majority stake in frozen meats and poultry company Atyab, in what could be an acquisition valued at EGP 3 – 3.2 bn, Al Mal reports, citing unnamed sources familiar with the negotiations. While still in the early stages of discussion, ADQ is set to soon start due diligence on Atyab, sources added. UK private equity firm Alta Semper had previously attempted an acquisition of Atyab, but withdrew from the running after ADQ’s offer came in 40% higher than the company’s own.

EFG Hermes has been tapped as financial advisors for the acquisition.

The acquisition offer comes as food security is growing evermore important because of the pandemic. Press reports earlier this week suggested a bid from an Arab sovereign wealth fund to acquire 75-100% of Atyab for EGP 3 bn was being positioned as a means of increasing Egyptian exports and supporting food security in both countries.

What else has ADQ been up to recently? Reports earlier this year indicated that ADQ could be working alongside the Sovereign Fund of Egypt to participate in Banque du Caire’s USD 500 mn IPO on the EGX. The two had also agreed last year to set up a USD 20 bn joint investment fund to invest using a variety of structures in manufacturing, traditional and renewable energy, and technology and other sectors

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