TPG, Abraaj Said in Talks for Loan to Buy Fast Food Chain Kudu - Bloomberg

TPG, Abraaj Said in Talks for Loan to Buy Fast Food Chain Kudu - Bloomberg:



"TPG Capital and Abraaj Group are seeking funding for the potential acquisition of Saudi fast food chain Kudu, three people with knowledge of the matter said. 




The two private equity firms are negotiating with banks to borrow about 700 million Saudi riyals ($187 million), the people said, asking not to be identified as the information is private. The firms are seeking to buy a 60 percent stake valued at 1 billion riyals, two of the people said, with the remaining funds coming from their existing resources. The deal should be completed in the second half, according to the people.



If the sale goes through it would be a rare sign of merger and acquisition activity in the kingdom, after deals fell about 83 percent this year, according to data compiled by Bloomberg. Saudi International Petrochemical Co. and Sahara Petrochemicals Co. said June 8 they were putting a planned merger on hold because of regulatory issues. That deal would have created a chemicals company with a market value of about $5.8 billion."



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