Abraaj Capital $375 Mln Rights Issue Fully Subscribed
DUBAI, UAE,
The rights issue which increases the company's paid-in capital to US$ 1.5 billion was fully subscribed, demonstrating strong confidence in and commitment to both Abraaj Capital and the investment opportunity in the
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
For further information: For further information: James Cordahi, Eliane Menassa, Switchboard: +971-4-506-4400, Emails: [email protected], [email protected], [email protected]; Dubai International Financial Centre (DIFC), Gate Village 8, 3rd Floor, PO Box 504905, Dubai, United Arab Emirates, http://www.abraaj.com
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