Tuesday, 9 November 2010
Deal of the day: Iranian company buys troubled Daewoo Electronics | beyondbrics: News and views on emerging markets | FT.com
However, for Daewoo’s creditors, Entekhab’s arrival offers a welcome exit - eleven years, three failed purchase attempts and 1,500 employee redundancies after the Daewoo conglomerate collapsed under the weight of its debts. According to mergermarket data, the deal is the first since at least 2004 where a Middle Eastern company has bought a Korean counterpart.
Despite its domestic turmoil, Daewoo has remained a premium brand in Middle East, and Entekhab, the major distributor of its Daewoo products in the Middle East, hopes to increase sales in Turkey, north Africa, and eastern Europe.
The investments - the first for the Riyada Enterprise Development fund - covers sectors from healthcare to agricultural businesses, Managing Director Tom Speechley told Reuters on the sidelines of a conference on entrepreneurship.
The companies are based in Egypt, Kuwait and Jordan, Speechley said."
"A quick fix is not likely to succeed and a targeted group of stimuli is required while a coordinated medium to long-term plan should be implemented across the market," leading United Arab Emirates' law firm, Hadef & Partners said in its report on the legal state of the real estate market in this Gulf emirate.
These were some of the key themes emerging from a survey conducted by the firm which had identified actions that could be considered to address key issues with the aim of assisting the market's recovery.
Aldar, the capital’s biggest developer, climbed 3.2 percent, lifting the ADX General Index 0.2 percent to 2,755.3. Emaar Properties PJSC, builder of the world’s tallest skyscraper, led the gain in Dubai after shareholders approved a $500 million convertible notes issue. The DFM General Index advanced 1.3 percent, the most since Oct. 28, to 1,715.68 at the 2 p.m. close in the emirate. Kuwait’s index lost 1 percent.
Investors are optimistic as “the market is now expecting that Aldar will get some non dilutive support given their announcement of explicit talks with the government,” said Shehzad Janab, head of asset management at Dubai-based Daman Investments PSC. “When Aldar moves up, it drags other real- estate names in the U.A.E.”
The shares rose 3.2 percent at 2.29 dirhams in Abu Dhabi, the most since Sept. 26. Aldar expects to reach a “framework” agreement with the state on “cash requirements” by the end of the year, it said in a statement today.
Abu Dhabi’s government aided Aldar earlier this year when it agreed to buy assets on the Yas Island leisure resort from the developer for 9.14 billion dirhams ($2.49 billion). The company, 19.2 percent-owned by state-backed investor Mubadala Development Co., has been hurt by slumping sales, falling asset values and about 26 billion dirhams of outstanding debt.
The new state-owned oil entity shall have a corporate character and full-fledged competence in discharging necessary legal actions to carry out its businesses towards realisation of the aspired goals for which it was set for. The corporation shall enjoy financial and administrative independence and practice its operations on commercial bases. With its headquarters in Sharjah, the company may open branches inside or outside the emirate of Sharjah.
The decree defines the functions of the corporation in the following specialistions of exploration, discovery, extraction, engineering operations and construction, maintenance, training, transportation , distribution, refining, storage, buying, selling, swapping, production, reception and delivery of hydrocarbon products. The company may also invest in firms and facilities having the similar objectives.
The shares gained 8.8 percent to 124 fils, the highest intraday level since June 13, as of 10:27 a.m. in Kuwait City.
Net income increased to 4.4 million dinars ($15.7 million) from 762,745 dinars in the year-earlier period. The company is confident of sustaining profit in 2011 and beyond, Chairman Marwan Boodai said.
Net loss, according to Reuters calculations based on nine-month figures issued on Tuesday, was the fourth consecutive quarter in the red for the developer. It was worse than analysts had forecast for a loss of 231 million dirhams according to a Reuters poll.
Aldar said in a statement it was in the 'final stages of discussion with Abu Dhabi government regarding cash requirements.'"
There could still be pull backs in precious metal prices, particularly if global markets continue to sell off as they did yesterday. As ArabianMoney forecast last week QE2 to some extent means that all the good news is now reflected in equity prices and there is a question mark over what might take them higher, or whether the Fed will want to drive them higher.
Of these, 26 per cent will increase their investments here, according to the report titled "Dubai: The Foreign Direct Investment destination of choice."
"The general rule that the current investor is essential to future investment flows appears to hold true in Dubai. This is especially important in times of global turbulence when many investors seek new opportunities," said Fahd Al Gergawi, CEO of FIO.
The new articles stipulate that a majority of board members will be Emiratis. It is, however, unclear how many foreigners will be inducted onto the board.
"Legally it was possible even earlier. However, with the resolution, it means that the company is ready to take corporate governance to the next level," said investment adviser Raju Menon, managing partner of Morison Menon Chartered Accountant.
“Full-year profit will probably a bit better than last year,” Peter Baltussen told Reuters on the sidelines of a business conference.
Baltussen said wants to increase its Islamic finance operations - currently just above 10 percent of the bank’s deposits are in held in its Islamic finance business, a number the bank wants to increase to 30 percent after five years.
The bonds - JPY10bn 3.77% maturing in 2040 and JPY5bn 3.58% maturing in 2030 - can be called by the issuer after 10 years.
The bond issues should be seen in the context of RAK's current debt reduction and debt management strategy. This new issuance will be partly used to replace more expensive debt, including debt of other public sector entities guaranteed by RAK.
Details of the project were announced during the opening of the first national conference for Bahraini women at the Sheraton Hotel yesterday.
Al Khaleej Development Company (Tameer) chief executive officer and Labour Market Regulatory Authority board member Dr Khalid Mohammed Abdulla said the Bahrain Development Bank and Supreme Council for Women (SCW) were working on the scheme.
Last month marked the 25th anniversary of the creation of Emirates airline, then a jumped-up operation founded by Dubai to compete with Gulf Air, the regional champion.
“It was a fantastic experience,” says Peter Hill, one of six original executives who worked at Emirates for more than a decade before moving on to head Sri Lankan airways for nine years.
Now the aviation veteran has returned to the Gulf as chief executive of Oman Air, and is responsible for nurturing one of the region’s more low-profile actors.
Although the choices and the prices are good news for consumers, the competition has had a devastating impact on Kuwait’s infant private aviation sector.
Until five years ago, state-owned Kuwait Airways held a domestic monopoly on air travel from the emirate of 3.5m people.