Top Vodafone Backer E& (Emirates Telecom) Weighs Increasing Stake to Up to 25% - Bloomberg
Vodafone Group Plc’s biggest shareholder said it’s considering increasing its stake to ensure it has influence over the British telecommunications company’s future.
Emirates Telecommunications Group Co PJSC, also known as e&, told investors on its first-quarter earnings call on Wednesday that it might raise its stake in Vodafone to 20% or 25%, according to an analyst report of the call and three people who dialed in who asked not to be identified because they aren’t authorized to speak to the media.
E& has built a 14.6% stake in Vodafone and said last month that it had opened discussions with the company to push for changes on its board. Vodafone is working to streamline its operations and turn around a years-long slump in its shares under new Chief Executive Officer Margherita Della Valle.
The British carrier has also attracted other investors from the industry including Liberty Global Plc and Xavier Niel, the French billionaire who controls Iliad. Together, they control more than a fifth of Vodafone’s shares.
E& Chief Executive Officer Hatem Dowidar said the Abu Dhabi-based company’s objective is to become a “significant minority investor with enough influence,” and said this “might be 20%, it might be 25% — that’s the limit,” according to a note to clients by Berenberg analyst Carl Murdock-Smith.
According to the note, e& also said it had received “no indication” of a dividend cut at the Newbury, England-based telecom group, despite some wider market fears.
Representatives for e& declined to comment on the call “beyond commitment to the current dividend.” Vodafone reports full-year results on May 16. A spokesman for the company declined to comment.
Friday 5 May 2023
ADIB boosts #AbuDhabi index, #Dubai retreats | Reuters
ADIB boosts Abu Dhabi index, Dubai retreats | Reuters
The Abu Dhabi index closed higher on Friday, boosted by gains in Abu Dhabi Islamic Bank (ADIB.AD) after sovereign wealth fund Mubadala Investment sold its 7.6% stake in ADIB to the lender's major shareholder, Emirates International Investment Company.
Posts transaction, the stake of Emirates International Investment Company in ADIB rose to 47%.
The Abu Dhabi benchmark index (.FTFADGI) settled 0.3% higher, extending gains from the previous session, lifted by a 3.6% increase in ADIB, while UAE's largest lender First Abu Dhabi Bank (FAB.AD) gained 1%.
Among the winners, Bank Of Sharjah surged 14.9%, its biggest intraday gain since late October 2021, after the lender received shareholders' approval to raise capital by issuing shares worth 800 million dirhams ($217.88 million)
Oil prices - a key catalyst for Gulf's financial market - rose more than 2% on hopes of the U.S. Federal Reserve pausing the rate hike cycle at its June policy meeting.
However, the Dubai benchmark index (.DFMGI) retreated 0.2%, snapping three sessions of gains, dragged down by losses in industrials and utilities.
Dubai Investments (DINV.DU) slid 6.2%, its steepest intraday dip in 51 weeks, as the stock went ex-dividend.
The board of Dubai Investments on March 21 proposed 12.5 fils per share cash dividend for the second half of the year.
Among other stocks, Emirates Central Cooling System Corp (EMPOWER.DU) fell 1.7% after the firm reported a near-8% reduction in first-quarter net profit to 167.3 million dirhams ($45.56 million).
The Dubai index posted weekly gains of 1.1%, according to Refinitiv data.
The Dubai stock market saw some price corrections as traders moved to secure their gains, said Farah Mourad, a senior market analyst at XTB MENA.
According to Mourad, building on the last two months' momentum in the market, the Dubai index could extend gains during the next few trading sessions.
The Abu Dhabi index closed higher on Friday, boosted by gains in Abu Dhabi Islamic Bank (ADIB.AD) after sovereign wealth fund Mubadala Investment sold its 7.6% stake in ADIB to the lender's major shareholder, Emirates International Investment Company.
Posts transaction, the stake of Emirates International Investment Company in ADIB rose to 47%.
The Abu Dhabi benchmark index (.FTFADGI) settled 0.3% higher, extending gains from the previous session, lifted by a 3.6% increase in ADIB, while UAE's largest lender First Abu Dhabi Bank (FAB.AD) gained 1%.
Among the winners, Bank Of Sharjah surged 14.9%, its biggest intraday gain since late October 2021, after the lender received shareholders' approval to raise capital by issuing shares worth 800 million dirhams ($217.88 million)
Oil prices - a key catalyst for Gulf's financial market - rose more than 2% on hopes of the U.S. Federal Reserve pausing the rate hike cycle at its June policy meeting.
However, the Dubai benchmark index (.DFMGI) retreated 0.2%, snapping three sessions of gains, dragged down by losses in industrials and utilities.
Dubai Investments (DINV.DU) slid 6.2%, its steepest intraday dip in 51 weeks, as the stock went ex-dividend.
The board of Dubai Investments on March 21 proposed 12.5 fils per share cash dividend for the second half of the year.
Among other stocks, Emirates Central Cooling System Corp (EMPOWER.DU) fell 1.7% after the firm reported a near-8% reduction in first-quarter net profit to 167.3 million dirhams ($45.56 million).
The Dubai index posted weekly gains of 1.1%, according to Refinitiv data.
The Dubai stock market saw some price corrections as traders moved to secure their gains, said Farah Mourad, a senior market analyst at XTB MENA.
According to Mourad, building on the last two months' momentum in the market, the Dubai index could extend gains during the next few trading sessions.
Middle East’s Biggest Port Prompts Rare Private Debt Deal - Bloomberg
Middle East’s Biggest Port Prompts Rare Private Debt Deal - Bloomberg
Pension manager Caisse de Dépôt et Placement du Québec financed its stake in a Dubai port with $900 million in private debt, tapping an infrequently-used market for deals in the Middle East.
Citigroup Inc. and JPMorgan Chase & Co. arranged the private-bond sale, according to people with knowledge of the deal, who declined to be identified as they are not authorized to discuss the matter.
The debt will be primarily used to refinance bridge loans put in place to finance CDPQ’s 21.9% stake in the entity controlling Jebel Ali Port — the biggest in the Middle East — and two industrial zones, the people said.
Montreal-based CDPQ last year agreed to invest $5 billion in the three assets through a joint venture, DP World Jebel Ali Terminals and Free Zone FZCo. Moody’s ratings agency assigned a Baa3 rating on the proposed senior secured notes in February this year. The notes were issued by a special purpose vehicle indirectly owned by CDPQ.
The deal was struck as Dubai sold stakes in some of its most prized assets. Jebel Ali Port helped transform the city into a global trade hub and is majority-owned by state-controlled DP World Ltd.
CDPQ, Citigroup, JPMorgan and DP World declined to comment.
The deal’s geography is notable in a private debt market typically dominated by US, European and Australian businesses. The transaction garnered as much as $1.5 billion in demand from institutional investors, the people said, which typically include insurance companies, pension funds and asset managers.
Pension manager Caisse de Dépôt et Placement du Québec financed its stake in a Dubai port with $900 million in private debt, tapping an infrequently-used market for deals in the Middle East.
Citigroup Inc. and JPMorgan Chase & Co. arranged the private-bond sale, according to people with knowledge of the deal, who declined to be identified as they are not authorized to discuss the matter.
The debt will be primarily used to refinance bridge loans put in place to finance CDPQ’s 21.9% stake in the entity controlling Jebel Ali Port — the biggest in the Middle East — and two industrial zones, the people said.
Montreal-based CDPQ last year agreed to invest $5 billion in the three assets through a joint venture, DP World Jebel Ali Terminals and Free Zone FZCo. Moody’s ratings agency assigned a Baa3 rating on the proposed senior secured notes in February this year. The notes were issued by a special purpose vehicle indirectly owned by CDPQ.
The deal was struck as Dubai sold stakes in some of its most prized assets. Jebel Ali Port helped transform the city into a global trade hub and is majority-owned by state-controlled DP World Ltd.
CDPQ, Citigroup, JPMorgan and DP World declined to comment.
The deal’s geography is notable in a private debt market typically dominated by US, European and Australian businesses. The transaction garnered as much as $1.5 billion in demand from institutional investors, the people said, which typically include insurance companies, pension funds and asset managers.
Will the #UAE Legalize Gambling? Wynn’s Ambitions Reflect Growing Optimism - Bloomberg
Will the UAE Legalize Gambling? Wynn’s Ambitions Reflect Growing Optimism - Bloomberg
The world's gambling industry is tentatively betting that the United Arab Emirates may become the first Gulf state to legalize casinos -- a move that could see it eventually surpass Singapore as a center for gambling.
Senior government officials say there are no imminent plans to allow gambling, but casino operators, consultants and lawyers familiar with the matter say there have been early discussions and a change is being considered. Wynn Resorts Ltd., the Las Vegas-based hotel and casino operator, last week unveiled details of a planned $3.9 billion gaming resort in the country, without explicitly saying that it would involve gambling.
Other casino operators have held informal discussions with UAE authorities about gambling, according to an executive at a gaming consultant and a UAE government official, who declined to be identified because the talks are private. Some are scouting for hotels to locate casinos, according to an official at a gaming equipment supplier.
The stakes are high. The UAE could pull in as much as $6.6 billion of gaming revenue annually and eventually surpass Singapore, home to the renowned Marina Bay Sands resort, according to Angela Hanlee, a senior gaming and hospitality analyst for Bloomberg Intelligence.
The world's gambling industry is tentatively betting that the United Arab Emirates may become the first Gulf state to legalize casinos -- a move that could see it eventually surpass Singapore as a center for gambling.
Senior government officials say there are no imminent plans to allow gambling, but casino operators, consultants and lawyers familiar with the matter say there have been early discussions and a change is being considered. Wynn Resorts Ltd., the Las Vegas-based hotel and casino operator, last week unveiled details of a planned $3.9 billion gaming resort in the country, without explicitly saying that it would involve gambling.
Other casino operators have held informal discussions with UAE authorities about gambling, according to an executive at a gaming consultant and a UAE government official, who declined to be identified because the talks are private. Some are scouting for hotels to locate casinos, according to an official at a gaming equipment supplier.
The stakes are high. The UAE could pull in as much as $6.6 billion of gaming revenue annually and eventually surpass Singapore, home to the renowned Marina Bay Sands resort, according to Angela Hanlee, a senior gaming and hospitality analyst for Bloomberg Intelligence.
#AbuDhabi fund Mubadala sells 7.6% ADIB stake to National Holding | Reuters
Abu Dhabi fund Mubadala sells 7.6% ADIB stake to National Holding | Reuters
Mubadala Investment Company, Abu Dhabi's second biggest sovereign wealth fund, has sold its 7.6% stake in Abu Dhabi Islamic Bank (ADIB.AD) to a unit of investment firm National Holding, they said in a joint statement on Friday.
Emirates International Investment Company (EIIC), the strategic investment arm of Abu Dhabi-based National Holding, was already ADIB's top shareholder and the acquisition of Mubadala's stake takes its holding to 47% of ADIB.
The transaction signalled "strong confidence in the prospects for long-term growth of the UAE's second largest Islamic lender by assets," the statement said.
It was "in line with Mubadala's strategy to create long-term value by optimizing a global portfolio of investments across a variety of sectors," the statement said, adding the state investor remained committed to the UAE's banking sector.
ADIB's first-quarter net profit jumped by more than half from a year earlier to 1.1 billion dirhams ($300 million). Its stock is up more than 16% so far this year, according to Refinitiv data.
Its market capitalisation is about $10.3 billion, Refinitiv data showed. At ADIB's current share price, Mubadala's 7.6% stake was worth more than $780 million, according to Reuters calculations.
Mubadala and EIIC did not disclose a value for the transaction in the statement.
Mubadala Investment Company, Abu Dhabi's second biggest sovereign wealth fund, has sold its 7.6% stake in Abu Dhabi Islamic Bank (ADIB.AD) to a unit of investment firm National Holding, they said in a joint statement on Friday.
Emirates International Investment Company (EIIC), the strategic investment arm of Abu Dhabi-based National Holding, was already ADIB's top shareholder and the acquisition of Mubadala's stake takes its holding to 47% of ADIB.
The transaction signalled "strong confidence in the prospects for long-term growth of the UAE's second largest Islamic lender by assets," the statement said.
It was "in line with Mubadala's strategy to create long-term value by optimizing a global portfolio of investments across a variety of sectors," the statement said, adding the state investor remained committed to the UAE's banking sector.
ADIB's first-quarter net profit jumped by more than half from a year earlier to 1.1 billion dirhams ($300 million). Its stock is up more than 16% so far this year, according to Refinitiv data.
Its market capitalisation is about $10.3 billion, Refinitiv data showed. At ADIB's current share price, Mubadala's 7.6% stake was worth more than $780 million, according to Reuters calculations.
Mubadala and EIIC did not disclose a value for the transaction in the statement.