Friday, 17 June 2011
The announcement could mean more money being spent in Saratoga County, where GlobalFoundries is currently building a massive computer-chip plant.
The Advanced Technology Investment Co., owned by the government of Abu Dhabi, detailed its plans as it also announced three key changes in the leadership of GlobalFoundries.
The developer and operator of shopping malls has set up a $2 billion global bond programme, paving the way for a potential debt issue.
The investor roadshow will be held in United Arab Emirates members Abu Dhabi and Dubai, and in Singapore, Hong Kong, Zurich and London from June 20 to June 28, the arranging banks said in a document seen by Reuters.
Citadel Capital Partners, the main shareholder in Citadel Capital, may hire Citigroup Inc. to advise on the possible sale, the two people said, speaking on condition of anonymity because the talks are private. One person said Abraaj is seeking a controlling stake in Citadel Capital.
One of the hurdles to the sale is that Citadel Capital Partners needs to provide legal representations and warranties before the sale, one of the people familiar said.
"Due to the continuing unfavorable new issues market environment, Aamal Company has postponed its intention to proceed with the planned offering of its shares in the form of GDRs," the group said yesterday. "Aamal Company expects to review the timing for its planned GDR offering in due course, subject to market conditions," it added.
The offering, which consisted of existing shares held by Faisal Bin Qassim al Thani, would have raised a maximum of around $400m to $500m.
Al Jaber set up a banks' committee earlier this year to thrash out a debt restructuring after it announced talks with lenders to discuss the terms of its facilities.
Sources at creditor banks had said the company and its lender committee of five banks had been locked in discussions on a standstill agreement, and are awaiting an announcement imminently.
"We are very pleased at the positive market reception to the bond offering, which demonstrates increased investor confidence in the strong long-term value proposition of the Emirate of Dubai," said Abdul Rahman Al Saleh, Director General of the Department of Finance.
"Investors are obviously supportive of the steps taken by the government over the last two years to counter the impact of the financial crisis, and satisfied with the prudent measures implemented to control costs and manage the budget deficit," Al Saleh said.
"It's not something that was openly advertised, but they would brag about how they were getting the land for next-to- nothing, and about how they were making huge sums of money," said a Gulf-based banker who had a business relationship with GFH and spoke on condition of anonymity.
The model was simple. "You basically go and cut a deal with your buddies in Morocco, or Egypt, Tunisia, Syria," said a senior investment banker in Bahrain. Having paid very little for a parcel of land "they (GFH) would go over to investors and mark it up by something like 40 percent, in some cases even more, and sell it." Other bankers and two senior company insiders confirmed such a markup was typical at the company.
Even so, certain analysts say this may be justifiable if there were meaningful synergies between the merging parties.
Yet, not all are convinced on the synergies to be reaped by either Maybank or CIMB from RHB Cap as they point out that it could result in significant duplication of resources and services.
GFH began life as a private equity company. Over the years it created dozens of financial services and real estate companies (and even a coffee shop chain) that funded each other and for which it brought in investors that it then charged fees.
One of the largest banks the company created was First Energy Bank (FEB), for which it raised $1 billion in capital in 2008, mostly from shareholders in Abu Dhabi and Libya. The company was established to invest in energy projects in the Middle East.
From Dubai’s successful $500m 10-year dollar-denominated bond sale to Majid Al-Futtaim Holding’s plans for a $2bn global bond programme – gulf headlines this week (ex OPEC) have touted the resurgent strength of the UAE bond markets.
Next week though, equities will dominate the local headlines – and the news may not be so positive.
C0me next Tuesday, all eyes will be on the bourses in Qatar and the UAE. MSCI is due to decide then whether to upgrades the markets from frontier to emerging status, and investors aren’t sold that the upgrades will happen.