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Sunday, 29 November 2020

GCC wealth funds eye USD 700 mn Amoun Pharma acquisition

Amoun Pharma could be the target of a joint acquisition bid by the Emirati and Saudi sovereign wealth funds, who are said to be eyeing Bausch Health’s unit in Egypt as part of a larger, longer-term partnership, according to a Bloomberg report citing what it says are sources familiar with the matter. There were no details on the timeline or value of the potential transaction. We noted last month that the price tag could be north of USD 700 mn. Bausch — back before it rebranded to sidestep the tarnished Valeant name — acquired Amoun, which manufactures human and veterinary meds, in 2015 for USD 800 mn and some contingency payments.

Saudi, UAE funds in talks over a wider co-investment plan: Saudi’s USD 347 bn Public Investment Fund (PIF) and ADQ, the Abu Dhabi-based USD 136 bn sovereign fund, have recently been working closely on transactions in key industries such as healthcare, food security, and industrials, Bloomberg’s sources said.

ADQ seems to like Egypt: ADQ invested in October in Indian retailer Lulu’s recent foray into Egypt, and, according to Bloomberg, the PIF is mulling the same. ADQ was also said in October to be mulling a bid for frozen meats and poultry company Atyab.

OTHER M&A NEWS- State-owned Banque Misr and Al Ahly Capital acquired a 40% stake in Western Union’s local representative, International Business Associates Group (IBAG), according to a statement, which did not put a value on the transaction. Al Ahly Capital is the National Bank of Egypt’s investment arm. IBA traces its roots to the late 1970s, when the late WIlliam Harrison opened a business that aimed to help foreign investors do business here. At its height, it owed Western Union and FedEx in Egypt and published Egypt Today and Business Today Egypt magazines.

Advisors: Zaki Hashem & Partners acted as legal advisor for the state-owned banks, while Banque Misr’s investment firm Misr Capital acted as financial advisor. Bahaa-Eldin Law Office (in cooperation with BonelliErede) was the legal advisor for IBAG, while Ernst & Young conducted due diligence on the transaction.

M&A IN BRIEF-

Bahrain’s Arab Banking Corporation (Bank ABC) has wrapped up due diligence on Blom Bank Egypt and plans to make a “generous” offer to acquire the Lebanese bank’s Egypt assets, Masrawy reports, citing unnamed industry sources. Bank ABC is bidding against fellow GCC bank Emirates NBD.

The National Bank of Egypt (NBE) will complete its acquisition of a 24% stake in Aman by the end of the year, the local press reports, citing unnamed sources it says are familiar with the matter. Parent company Raya Holding approved the sale of the minority stake in the company’s non-banking financial services arm earlier this month. Advisors: NBE recruited Grant Thornton earlier in September as its financial advisor on the transaction, while Matouk Bassiouny & Hennawy is serving as legal counsel.

Speed Medical plans to acquire the Noor El Islam Medical Labs in Beheira and Kafr El Sheikh for a maximum of EGP 6.5 mn as well as El Sharq Labs in Kafr El Sheikh for up to EGP 2.5 mn. The lab and diagnostic testing company has also set up a healthcare facility management arm to offer management services to other operators.

Pioneers Holding’s demerger plans were approved by shareholders last week, moving the company closer to splitting into three entities specializing in financial services, real estate, and the industrial sector, according to an EGX filing (pdf).

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