Dubai’s Embattled Abraaj Faces Lawsuit Over Turkish Dairy Maker - Bloomberg:
Abraaj Group Ltd. is being sued by one of the founders of a Turkish dairy maker that the embattled buyout firm is trying to sell, according to people familiar with the matter.
The legal action comes as liquidators of Dubai-based Abraaj seek to dispose of assets in developing nations around the world to help repay more than $1 billion in debt. The lawsuits relate to the purchase in 2014 by the private equity firm and the European Bank for Reconstruction and Development of a majority stake in Yorsan Gida Mamulleri AS, the Istanbul-based producer of yogurt, cheese, milk and the traditional Turkish drink, ayran.
Serafettin Yoruk, who kept 20 percent of Yorsan following the deal, has filed three cases against Abraaj, said five of the people, who asked not to be identified because deliberations are confidential. He alleges that his stake has been diluted to 3 percent through what he deems have been unfair capital increases, the people said. Abraaj won one of the cases, one person said.
Thursday 19 July 2018
Aramco-Sabic Deal Would Funnel Billions to Saudi Sovereign Fund - Bloomberg
Aramco-Sabic Deal Would Funnel Billions to Saudi Sovereign Fund - Bloomberg:
A potential deal between Saudi Arabia’s state-owned oil and petrochemical giants could enable the country’s sovereign wealth fund to raise billions of dollars it had hoped to collect from Aramco’s stalled initial public offering.
Saudi Aramco, the world’s largest oil company, is considering buying a strategic stake in the Sabic petrochemical group, Aramco said on Thursday in a statement, adding that the talks were at a “very early stage.” The Public Investment Fund, the country’s sovereign wealth fund, controls 70 percent of Sabic, as Saudi Basic Industries Corp. is known, with the rest of the company’s shares listed on the Saudi stock exchange.
If Aramco does buy a stake, the deal would let the PIF convert at least part of its shareholding into cash that it could then use to make other investments overseas. At current market prices, the PIF’s stake in Sabic is worth about $70 billion. For the government, the transaction would simply involve moving money from one pocket to another, as Aramco, Sabic and the PIF are all state-run entities.
A potential deal between Saudi Arabia’s state-owned oil and petrochemical giants could enable the country’s sovereign wealth fund to raise billions of dollars it had hoped to collect from Aramco’s stalled initial public offering.
Saudi Aramco, the world’s largest oil company, is considering buying a strategic stake in the Sabic petrochemical group, Aramco said on Thursday in a statement, adding that the talks were at a “very early stage.” The Public Investment Fund, the country’s sovereign wealth fund, controls 70 percent of Sabic, as Saudi Basic Industries Corp. is known, with the rest of the company’s shares listed on the Saudi stock exchange.
If Aramco does buy a stake, the deal would let the PIF convert at least part of its shareholding into cash that it could then use to make other investments overseas. At current market prices, the PIF’s stake in Sabic is worth about $70 billion. For the government, the transaction would simply involve moving money from one pocket to another, as Aramco, Sabic and the PIF are all state-run entities.
Crude Advances as Saudi Arabia Dismisses Oversupply Speculation - Bloomberg
Crude Advances as Saudi Arabia Dismisses Oversupply Speculation - Bloomberg:
Crude pushed higher as Saudi Arabia pledged not to flood world markets with oil and the dollar wavered.
Futures ended Thursday’s session 1 percent higher in New York. Saudi Arabia dismissed assertions that it’ll oversupply demand as “without basis” and said it “does not try to push oil into the market beyond its customers’ needs.” Meanwhile, the greenback pared its biggest gain in a week after U.S. President Donald Trump said a strong currency puts the U.S. at a disadvantage.
“The Saudi story is the big story that turned the momentum around,” said Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago. The dollar losing steam combined with WTI’s approaching expiration also provided strength, Flynn said.
Crude pushed higher as Saudi Arabia pledged not to flood world markets with oil and the dollar wavered.
Futures ended Thursday’s session 1 percent higher in New York. Saudi Arabia dismissed assertions that it’ll oversupply demand as “without basis” and said it “does not try to push oil into the market beyond its customers’ needs.” Meanwhile, the greenback pared its biggest gain in a week after U.S. President Donald Trump said a strong currency puts the U.S. at a disadvantage.
“The Saudi story is the big story that turned the momentum around,” said Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago. The dollar losing steam combined with WTI’s approaching expiration also provided strength, Flynn said.
Saudi Aramco’s Strange Chemical Attraction - Bloomberg
Saudi Aramco’s Strange Chemical Attraction - Bloomberg:
Saudi Aramco’s IPO may be on hold, but that doesn’t mean its bankers are idle.
It emerged on Thursday that the state-owned oil champion — full name: Saudi Arabian Oil Co. — is considering buying a stake in Saudi Basic Industries Corp., or Sabic, a giant chemicals firm.
From a banker’s perspective, such a deal is a gift — not least from a logistical perspective, since everyone involved is within easy reach of each other and largely answers to the same ultimate boss. Aramco is, of course, state-owned. Sabic, meanwhile, is 70 percent owned by Saudi Arabia’s Public Investment Fund (PIF) — or, for brevity’s sake, the state. The other 30 percent of Sabic is listed; indeed, with a market cap of about $104 billion, it’s the country’s largest listed company. But any purchase would involve only shares owned by the PIF, not traded on the Tadawul.
Saudi Aramco’s IPO may be on hold, but that doesn’t mean its bankers are idle.
It emerged on Thursday that the state-owned oil champion — full name: Saudi Arabian Oil Co. — is considering buying a stake in Saudi Basic Industries Corp., or Sabic, a giant chemicals firm.
From a banker’s perspective, such a deal is a gift — not least from a logistical perspective, since everyone involved is within easy reach of each other and largely answers to the same ultimate boss. Aramco is, of course, state-owned. Sabic, meanwhile, is 70 percent owned by Saudi Arabia’s Public Investment Fund (PIF) — or, for brevity’s sake, the state. The other 30 percent of Sabic is listed; indeed, with a market cap of about $104 billion, it’s the country’s largest listed company. But any purchase would involve only shares owned by the PIF, not traded on the Tadawul.
Kuwait’s Zain about to complete $700 mln loan - sources | Reuters
Kuwait’s Zain about to complete $700 mln loan - sources | Reuters:
Kuwait-based telecommunications group Zain will soon complete a $700 million financing, sources familiar with the matter said.
Kuwait’s biggest telecom operator has mandated First Abu Dhabi Bank to coordinate the deal, which is a revolving credit facility with a five-year maturity.
Zain declined to comment.
Kuwait-based telecommunications group Zain will soon complete a $700 million financing, sources familiar with the matter said.
Kuwait’s biggest telecom operator has mandated First Abu Dhabi Bank to coordinate the deal, which is a revolving credit facility with a five-year maturity.
Zain declined to comment.
COLUMN-U.S. SPR oil release would be a mistake: Kemp | Reuters
COLUMN-U.S. SPR oil release would be a mistake: Kemp | Reuters:
Releasing crude oil from the U.S. Strategic Petroleum Reserve (SPR) in response to a rise in prices resulting from the reimposition of sanctions on Iran would be a mistake and ultimately self-defeating.
The SPR has sufficient crude to offset any loss of exports from Iran for many months, especially if stock releases are combined with increased oil production by Saudi Arabia and other members of OPEC.
The statutes governing the operation of the SPR grant the U.S. president broad discretion to order a drawdown, and any order is unlikely to be constrained by Congress or the courts.
Releasing crude oil from the U.S. Strategic Petroleum Reserve (SPR) in response to a rise in prices resulting from the reimposition of sanctions on Iran would be a mistake and ultimately self-defeating.
The SPR has sufficient crude to offset any loss of exports from Iran for many months, especially if stock releases are combined with increased oil production by Saudi Arabia and other members of OPEC.
The statutes governing the operation of the SPR grant the U.S. president broad discretion to order a drawdown, and any order is unlikely to be constrained by Congress or the courts.
Breakingviews - Aramco’s downstream diversion solves few problems | Reuters
Breakingviews - Aramco’s downstream diversion solves few problems | Reuters:
Saudi Aramco has a new way to keep corporate financiers busy. The state-owned oil giant has spent more than two years weighing up what would be the world’s largest ever initial public offering. Now it might buy a stake in petrochemical maker Saudi Basic Industries Corporation. Though it’s not unusual for oil producers to diversify into making oil-based products, the deal would do little to help Saudi Arabia achieve a couple of key objectives.
There are scant details about the possible investment, which Aramco confirmed on Thursday following a Reuters report. The oil group says it has been looking at possible acquisitions at home and abroad, and that it is in talks with Saudi’s Public Investment Fund (PIF), which owns 70 percent of SABIC. Yet it’s unclear whether Aramco would buy all the shares or just take a minority stake in the $104 billion company.
There’s some logic to either option. As one of the world’s lowest-cost producers, there’s little point in Aramco buying other oil fields. Moving into refining and selling petroleum-based produc
Saudi Aramco has a new way to keep corporate financiers busy. The state-owned oil giant has spent more than two years weighing up what would be the world’s largest ever initial public offering. Now it might buy a stake in petrochemical maker Saudi Basic Industries Corporation. Though it’s not unusual for oil producers to diversify into making oil-based products, the deal would do little to help Saudi Arabia achieve a couple of key objectives.
There are scant details about the possible investment, which Aramco confirmed on Thursday following a Reuters report. The oil group says it has been looking at possible acquisitions at home and abroad, and that it is in talks with Saudi’s Public Investment Fund (PIF), which owns 70 percent of SABIC. Yet it’s unclear whether Aramco would buy all the shares or just take a minority stake in the $104 billion company.
There’s some logic to either option. As one of the world’s lowest-cost producers, there’s little point in Aramco buying other oil fields. Moving into refining and selling petroleum-based produc
MIDEAST STOCKS-Gulf stocks muted; SABIC little changed after Aramco plan | Reuters
MIDEAST STOCKS-Gulf stocks muted; SABIC little changed after Aramco plan | Reuters:
Gulf stock markets were muted on Thursday, with Saudi Basic Industries Corporation (SABIC) little changed in Saudi Arabia after Saudi Aramco said it was in early talks to acquire a stake in the petrochemical giant.
SABIC, the largest listed company in the Gulf and the world’s fourth-biggest petrochemicals company, closed up by 0.2 percent after edging between positive and negative territory earlier in the trading session.
That suggested investors were still assessing the possible impact on SABIC of a plan for Saudi Aramco to buy a strategic stake in the company.
Gulf stock markets were muted on Thursday, with Saudi Basic Industries Corporation (SABIC) little changed in Saudi Arabia after Saudi Aramco said it was in early talks to acquire a stake in the petrochemical giant.
SABIC, the largest listed company in the Gulf and the world’s fourth-biggest petrochemicals company, closed up by 0.2 percent after edging between positive and negative territory earlier in the trading session.
That suggested investors were still assessing the possible impact on SABIC of a plan for Saudi Aramco to buy a strategic stake in the company.
MIDEAST STOCKS-Gulf markets mixed; SABIC edges up on Aramco plan | Reuters
MIDEAST STOCKS-Gulf markets mixed; SABIC edges up on Aramco plan | Reuters:
Gulf stock markets were mixed in early trade on Thursday, with Saudi Basic Industries Corporation (SABIC) nudging up in Saudi Arabia after Saudi Aramco said it was in early talks to acquire a stake in the petrochemical giant.
SABIC, the largest listed company in the Gulf, was up by 0.2 percent in early trading.
That followed separate statements on Thursday from Saudi Aramco and Public Investment Fund (PIF) saying that Aramco was in early talks to acquire a stake in SABIC from the kingdom’s sovereign wealth fund. Reuters reported on Wednesday that the government was considering a plan for Aramco to buy a stake in the petrochemical maker.
Gulf stock markets were mixed in early trade on Thursday, with Saudi Basic Industries Corporation (SABIC) nudging up in Saudi Arabia after Saudi Aramco said it was in early talks to acquire a stake in the petrochemical giant.
SABIC, the largest listed company in the Gulf, was up by 0.2 percent in early trading.
That followed separate statements on Thursday from Saudi Aramco and Public Investment Fund (PIF) saying that Aramco was in early talks to acquire a stake in SABIC from the kingdom’s sovereign wealth fund. Reuters reported on Wednesday that the government was considering a plan for Aramco to buy a stake in the petrochemical maker.
Oil Trades Below $69 as Investors Weigh Mixed Inventories Report - Bloomberg
Oil Trades Below $69 as Investors Weigh Mixed Inventories Report - Bloomberg:
Oil traded below $69 a barrel as investors tried to gauge demand growth in the world’s biggest economy following conflicting data on U.S. stockpiles.
Futures in New York were little changed Thursday after rebounding 1 percent in the previous session from a 1.5 percent drop. Prices have been wavering after government data showed a surprise gain in nationwide crude inventories, while gasoline held in U.S. storage tanks dropped by the most since May on the back of robust fuel demand. Meanwhile, an OPEC committee meeting provided little insight on how output quotas will be split between the group.
Oil traded below $69 a barrel as investors tried to gauge demand growth in the world’s biggest economy following conflicting data on U.S. stockpiles.
Futures in New York were little changed Thursday after rebounding 1 percent in the previous session from a 1.5 percent drop. Prices have been wavering after government data showed a surprise gain in nationwide crude inventories, while gasoline held in U.S. storage tanks dropped by the most since May on the back of robust fuel demand. Meanwhile, an OPEC committee meeting provided little insight on how output quotas will be split between the group.
UPDATE 1-UAE telco du Q2 net profit rises 1.3 pct | Reuters
UPDATE 1-UAE telco du Q2 net profit rises 1.3 pct | Reuters:
Emirates Integrated Telecommunications Co (EITC), also known as du, posted a 1.3 percent rise in second-quarter net profit on Thursday, buoyed by an increase in fixed line revenue.
Net profit after royalties for the three months to June 30 rose to 453 million dirhams ($123.34 million) from 447 million a year earlier.
SICO Bahrain and EFG Hermes forecast du would make a profit of 430.4 million and 428.7 million dirhams, respectively.
Emirates Integrated Telecommunications Co (EITC), also known as du, posted a 1.3 percent rise in second-quarter net profit on Thursday, buoyed by an increase in fixed line revenue.
Net profit after royalties for the three months to June 30 rose to 453 million dirhams ($123.34 million) from 447 million a year earlier.
SICO Bahrain and EFG Hermes forecast du would make a profit of 430.4 million and 428.7 million dirhams, respectively.
Commercial Bank of Qatar beats estimates with Q2 profit | Reuters
Commercial Bank of Qatar beats estimates with Q2 profit | Reuters:
Commercial Bank of Qatar , the Gulf Arab state’s third-largest lender by assets, beat estimates with a five-fold increase in second-quarter net profit on Thursday as provisions for bad loans fell by more than half.
Net profit for the three months to June 30 jumped to 450.4 million riyals ($123.7 million) from 88.4 million riyals a year earlier and topped the 409.0 million expected by three analysts polled by Reuters.
The results mark a fourth consecutive quarter of profit jumps for the bank, which until last year was setting aside additional provisions to cover bad debt linked to troubles facing some of its overseas investments, as well as cutbacks in state and consumer spending in Qatar.
Commercial Bank of Qatar , the Gulf Arab state’s third-largest lender by assets, beat estimates with a five-fold increase in second-quarter net profit on Thursday as provisions for bad loans fell by more than half.
Net profit for the three months to June 30 jumped to 450.4 million riyals ($123.7 million) from 88.4 million riyals a year earlier and topped the 409.0 million expected by three analysts polled by Reuters.
The results mark a fourth consecutive quarter of profit jumps for the bank, which until last year was setting aside additional provisions to cover bad debt linked to troubles facing some of its overseas investments, as well as cutbacks in state and consumer spending in Qatar.
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