Thursday 3 June 2021

#AbuDhabi’s ADQ Weighs Stake in Juhayna Food Egyptian Dairy Firm - Bloomberg

Abu Dhabi’s ADQ Weighs Stake in Juhayna Food Egyptian Dairy Firm - Bloomberg

ADQ is considering acquiring a stake in Juhayna Food Industries as the Abu Dhabi sovereign wealth fund pursues more deals in Egypt, according to people familiar with the matter.

Abu Dhabi’s newest state fund has been weighing a potential investment in Egypt’s largest dairy and juice producer, the people said, asking not to be identified as the matter is private. Shares of Juhayna were up 5% at 10:46 a.m. Thursday in Cairo for the biggest intraday gain in more than two weeks, giving the company a market value of 4.2 billion Egyptian pounds ($266 million).

Deliberations are in the early stages and there’s no certainty ADQ will proceed with any transaction, the people said. A representative for ADQ wasn’t immediately available for comment. Juhayna management haven’t received any official offers or letters from ADQ, the company said in an exchange filing Thursday.

ADQ has been among the most active Middle East investors since its inception in 2018 and has been looking beyond the United Arab Emirates for deals. Egypt has been a region of focus, with ADQ committing to invest $10 billion alongside the country’s sovereign wealth fund.

Last year, ADQ agreed to partner with LuLu Group International, which runs one of the Middle East’s largest hypermarket chains, by investing $1 billion to back the grocer’s expansion in Egypt. And in March, it bought an Egyptian pharmaceuticals company from Bausch Health Cos. for $740 million.

Founded in 1983 by Safwan Thabet, Juhayna manufactures more than 200 products and employs over 4,000 people, according to its website. Its share price has taken a hit since late 2020 after authorities detained Thabet and then his son, Seifeldin Thabet, who is chief executive officer and deputy chairman.

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