Back to the complete issue
Monday, 1 August 2022

B investments has a month to pre-empt Adnoc’s play for half of TotalEnergies Egypt

Could B Investments pre-empt Adnoc’s bid for TotalEnergies Egypt? Private equity outfit B Investments is “evaluating all options” after Adnoc Distribution agreed to buy 50% of TotalEnergies Egypt last week, B Investments IR head Omar El Labban told Enterprise.

B Investments is the only minority shareholder in TotalEnergies Egypt: Under the agreement, Adnoc would acquire the entirety of its c. 15.4% stake in the fuel distributor, B Investments said in a disclosure to the EGX (pdf) yesterday. Total Energies Marketing Afrique (TEMA), which holds the 84.6% majority stake, would sell 34.6% to Adnoc, handing the two companies 50-50 ownership.

B Investments has the right of first refusal, allowing it to pre-empt Adnoc’s bid and buy the 34.6% stake that TEMA plans to sell to the Emirati firm. Alternatively, B Investments can allow the transaction with Adnoc to go ahead and exit TotalEnergies entirely.

B Investments’ board has until 29 August to decide how to respond to Adnoc’s bid. The board “should meet soon” to make a decision on the offer, El Labban said. “We’re in a good position to evaluate all our options and determine which option is best suitable for us.”

ICYMI- Adnoc subsidiary Adnoc Distribution last week agreed to acquire 50% of TotalEnergies Egypt for up to USD 203 mn, which the company said would be the largest acquisition in its history. It is pending regulatory approval and should be completed in 1Q 2023.

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.