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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.

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