MEDIA RELEASE PR37233
Abraaj Capital $375 Mln Rights Issue Fully Subscribed
DUBAI, Nov. 23/PRNewswire-AsiaNet/ --
Abraaj Capital Holdings Limited (the parent entity for the
Abraaj Group and its associated funds) announces that it has completed a US$
375 million capital increase to existing shareholders, strengthening its
balance sheet to capitalise on strategic buying opportunities, expand its
geographic and product coverage, and consolidate its market-leading position.
The rights issue which increases the company's paid-in capital
to US$ 1.5 billion was fully subscribed, demonstrating strong confidence in
and commitment to both Abraaj Capital and the investment opportunity in the
Middle East, North Africa and South Asia (MENASA). Abraaj is the region's
largest private equity group.
Use of the proceeds will include seeding new funds to take
advantage of an attractive investment environment, as well as possibly
executing strategic opportunities for Abraaj itself to expand its sphere of
operations. This will also help accelerate and enhance long-term shareholder
value by protecting some of the unlocked value in the balance sheet.
Sheikh Abdulrahman al Turki, Chairman of Abraaj Capital
Holdings Limited, said: "This initiative will enhance value for all Abraaj
shareholders and allow the firm to consummate opportunities in an expedient
manner and at an interesting price-point in the cycle, while also retaining
the option to position itself for a successful liquidity event in the
future."
"The success of the rights issue, with its focus on raising
strategic capital, stands in contrast to the current global fundraising
environment. On a consolidated basis, the investment portfolio of the funds
Abraaj manages is healthy on account of robust performance of our portfolio
companies. Most of these operate in defensive or growth-oriented industries
that are less impacted by the recession."
Arif Naqvi, Founder and Group CEO of Abraaj Capital Holdings
Limited, added: "Abraaj Capital has widened its lead as the top private
equity firm in the region. As a result of our investment in our people and
processes, not only is the short-term impact of the global downturn minimal
on us, the long-term prospects for our business are probably better than at
any point in the past. The economic environment has resulted in interesting
opportunities. Asset prices are more reasonable, aspiring regional and global
competition has largely retreated, and consolidation opportunities, both for
our firm and our portfolio companies, are available."
About Abraaj Capital: Dubai-based Abraaj Capital is the
largest private equity group in the Middle East, North Africa and South Asia
(MENASA). Since inception in 2002, it has raised about US$ 7 billion and
distributed almost US$ 3 billion to investors. It has made more than 35
investments in 11 countries and exited 20. The group operates offices in five
countries, including Saudi Arabia, Egypt and Turkey. About 155 people work in
Abraaj, including around 75 world-class investment professionals. Abraaj has
holdings in some 25 companies, including some of the region's most prominent,
such as Air Arabia, the region's biggest low-cost carrier; Acibadem
Healthcare Group, Turkey's biggest privately owned operator of premium
hospitals; and Al Borg, the Middle East's biggest medical-testing laboratory
company. Abraaj has won several international awards, including 'Middle
Eastern Private Equity Firm of the Year' from London-based Private Equity
International four years in a row. Abraaj Capital Ltd., a member of the
Abraaj Capital group, is licensed by the Dubai Financial Services Authority,
while the group is also an associate member of the European Venture Capital
Association. Abraaj's commitments to Corporate Social Responsibility include
a US$ 10 million educational trust fund for Palestinian children who lost
parents during conflict in Gaza in December 2008 and January 2009. The Abraaj
Capital Art Prize, the world's most generous art prize, is designed to
support artists from the MENASA region.
For more information, please contact:
James Cordahi / Eliane Menassa,
Switchboard: +971-4-506-4400,
Emails: communications@abraaj.com; james.cordahi@abraaj.com;
eliane.menassa@abraaj.com .
Dubai International Financial Centre (DIFC)
Gate Village 8, 3rd Floor
PO Box 504905
Dubai, United Arab Emirates
SOURCE: Abraaj Capital Holdings Limited
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