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By BRIAN NGUGI
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Emerging reports that the US investment manager Colony Capital's deal to take over control of the Dubai-based private equity firm, Abraaj, is encountering investor resistance has left Kenyan firms
Abraaj has a rescue plan. But several news reports now predict that the deal could not be avoided because of the need for some of the information required by Colony.
Abraaj Group . Wall Street Journal and Reuters news agency said that it was proposed that it would be able to deal with some of the problems it had.
"The issue is how the deal would be structured. Colony does not want to do anything that does not have the full approval of the limited partners, "said a Reuters news report. <br> <br> <br> <br> <br> <br> <br> <br> Kenyan firms where Abraaj has acquired a stake will be following keenly to see what comes out of the takeover deal. The fund has invested billions of shillings in Kenyan companies, signalling its strong bet on the Kenya economy's future growth.
Abraaj Holdings Director of Communications Mitali Atal recently said that the current challenges are not interfere with the operations of Java which it owns in Kenya.
"The provisional liquidation for Abraaj Holdings is a short supervised restructuring process which will
The firm with a $ 10, "she said.
The firm with a $ 10 trillion (Sh1 trillion) Middle East, South Asia and Africa has a long history of manufacturing and marketing in the United States.
Colony's offer last month to buy the fund management business that runs in Latin America, Sub Saharan Africa, North Africa and Turkey funds caused by a disp $ 1 trillion (about Sh103 trillion) healthcare fund including in Kenya.
Abraaj's fall from grace when one of the 24 investors in Abraaj's $ 1 trillion healthcare fund hired investigators to find out what happened to some of the money invested in the vehicle. When the investigation became public, in 2017, the Competition Authority of Kenya (CAK) approved Abraaj Group's acquisition of a 56.2 per cent stake in Kenyan hospital chain Avenue Group, making it the latest of the PE fund's string of local acquisitions.
In July last year, Washington-based Emerging Capital Partners (ECP), which owned 90 per cent of Kenyan restaurant chain Java, announced it was selling its entire stake to Abraaj in a takeover plan that also forced Java Coffee House's founder chairman Kevin Ashley to share with him 10 per cent stake.
Abraaj at the time said it was valued at Sh13 billion. Abraaj has injected Sh320 trillion in 80 transactions across Africa. It is yet to disclose the value of its Kenya portfolio.
The group also owns 10 per cent of the Kenyatta family's Brookside Dairies. Its independently run Abraaj Growth Markets Health Fund (AGHF), a $ 1 trillion (about Sh103 trillion) health fund focused on Africa, India, and Pakistan, has also been snapping up Kenyan hospitals firming its grip in the sector.
Abraaj's health fund Kenyan portfolio is made up of 18 clinics and 10 hospitals that provide over 700 patient beds
The AGHF is focused on Africa, India, and Pakistan, and has been snapping up Kenyan hospital chains firming its grip in the sector. The Abraaj Growth Markets Health Fund has been established by the Bill & Melinda Gates Foundation, the World Bank's International Finance Corporation, the UK's CDC Group, and the Proparco Group of France.
Abraaj denies any wrongdoing but the dispute has weighed heavily on what is the largest private equity firm in the Middle East and Africa.
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