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Thursday, 1 December 2022

ADQ’s Agthia now owns 60% of Auf Group

UAE’s Agthia is now the majority owner of Abu Auf: Emirati food and beverage major Agthia has completed its acquisition of a 60% stake in Egyptian food company Auf Group, Agthia said in a statement (pdf). The stake was sold by three members of the Auf family as well as Tanmiya Capital Ventures (TCV), leaving the three founders with a combined 30%, while TCV holds the remaining 10% stake. The transaction values Auf Group at some EGP 4.9 bn.

REFRESHER- Agthia, which is majority-owned by Abu Dhabi sovereign fund ADQ, approved the transaction in July. The Auf Group — which owns assets including the popular food brand Abu Auf — had as recently as April been eyeing an IPO on the EGX, but Agthia’s F&B experience in the region made the acquisition route the more attractive choice, Auf Chief Marketing Officer Rasha Ghaly told Enterprise at the time. Auf is keeping its existing executive management team including the three founders, and has no plans to move its HQ abroad for at least the next three years. The company plans to invest in Gulf expansion post-acquisition.

What they said: “This transaction represents a significant milestone in Auf Group’s history, and we look forward to working alongside the Agthia team to build on our success to date,” Auf Group CEO Ahmed Auf said in the statement. “Our focus remains on maintaining our unique position in the Egyptian snacking market while expanding our reach and footprint.”

Advisors: EFG Hermes were sole sell-side financial advisors to Auf Group on the transaction, they said in a statement (pdf), while CI Capital acted as financial advisor to Agthia. Freshfields Bruckhaus Deringer and Matouk Bassiouny & Hennawy acted as Agthia’s legal counsel, while Al Tamimi & Co was Auf’s legal advisor.

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