Evergrande’s Troubled EV Maker Agrees to $500 Million Share Sale - Bloomberg
The electric-vehicle unit of defaulted property developer China Evergrande Group agreed to sell a roughly 28% stake to Dubai-based startup NWTN Inc. in a deal that could keep the carmaker in business.
NWTN has agreed to invest $500 million in China Evergrande New Energy Vehicle Group Ltd. in exchange for shares and a majority of the EV maker’s board, the companies announced Monday. The transaction is subject to conditions including Evergrande Group’s debt restructuring, as well as regulatory and shareholder approvals.
In its first report of financial results in two years, Evergrande NEV last month posted an $11.7 billion loss for 2021 and 2022 and warned of its ability to continue as a going concern. NWTN, founded by Chinese entrepreneur Alan Nan Wu, said it believes that Evergrande NEV can help meet demand for EVs in the Middle East, including the United Arab Emirates.
The companies expect the deal to close in the fourth quarter.
Evergrande NEV stock is an important part of the wider group’s debt restructuring, which is among the largest ever in China. Evergrande has proposed that creditors can choose to receive a combination of new debt and instruments tied to the shares of its property-services unit, its EV division or the builder itself.
At its peak valuation in April 2021, Evergrande NEV was worth more than Ford Motor Co. and General Motors Co., despite the company not yet having started sales. It began delivering electric sport utility vehicles late last year.
Monday, 14 August 2023
India makes first crude oil payment to #UAE in Indian rupees | Reuters
India makes first crude oil payment to UAE in Indian rupees | Reuters
India and the United Arab Emirates have started settling bilateral trade in their local currencies with India's top refiner making payment in rupees for purchase of a million barrels of oil from the Middle Eastern nation, the Indian government said on Monday.
Indian Oil Corp (IOC.NS) made payment to Abu Dhabi National Oil Company (ADNOC), according to a statement issued by Indian embassy in UAE.
The transaction comes after one involving the sale of 25 kg gold from a UAE gold exporter to a buyer in India at about 128.4 million rupees ($1.54 million).
India in July signed an agreement with the UAE allowing it to settle trade in rupees instead of dollars, boosting India's efforts to cut transaction costs by eliminating dollar conversions.
During a visit by Indian Prime Minister Narendra Modi to the UAE, the two countries also agreed to set up a real-time payment link to facilitate easier cross-border money transfers.
Bilateral trade between India and UAE was $84.5 billion in 2022/23.
India is keen to push similar local currency arrangements with other countries, as it looks to boost exports amid slowing global trade.
India and the United Arab Emirates have started settling bilateral trade in their local currencies with India's top refiner making payment in rupees for purchase of a million barrels of oil from the Middle Eastern nation, the Indian government said on Monday.
Indian Oil Corp (IOC.NS) made payment to Abu Dhabi National Oil Company (ADNOC), according to a statement issued by Indian embassy in UAE.
The transaction comes after one involving the sale of 25 kg gold from a UAE gold exporter to a buyer in India at about 128.4 million rupees ($1.54 million).
India in July signed an agreement with the UAE allowing it to settle trade in rupees instead of dollars, boosting India's efforts to cut transaction costs by eliminating dollar conversions.
During a visit by Indian Prime Minister Narendra Modi to the UAE, the two countries also agreed to set up a real-time payment link to facilitate easier cross-border money transfers.
Bilateral trade between India and UAE was $84.5 billion in 2022/23.
India is keen to push similar local currency arrangements with other countries, as it looks to boost exports amid slowing global trade.
Most Gulf markets in red as China woes linger, oil falls | Reuters
Most Gulf markets in red as China woes linger, oil falls | Reuters
Most stock markets in the Gulf ended lower on Monday as traders considered a slowdown in China, while falling oil prices added to the worries.
China's new bank loans tumbled in July and other key credit gauges also weakened, even after policymakers cut interest rates and promised to roll out more support for the faltering economy.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, snapping three sessions of gains, with Dr Sulaiman Al-Habib Medical Sevices (4013.SE) losing 1.9%.
Elsewhere, Saudi Awwal Bank (1060.SE) retreated 2.4% as the lender traded ex-dividend.
The Saudi stock market saw some downside risks as traders moved to selling another time, said Ahmed Negm, Head of Market Research MENA at XS.com.
"While the latest price corrections have undermined the market's strength, the main index remained on a positive performance for the year."
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 1.2% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Abu Dhabi index (.FTFADGI) eased 0.3%, with the countyr's biggest lender First Abu Dhabi Bank (FAB.AD) losing 0.7%.
Oil prices - which fuels the Gulf's economy - slipped about 1% as concerns about China's faltering economic recovery and a stronger dollar, after seven weeks of gains driven by tightening supply from OPEC+ cuts.
In Qatar, the benchmark (.QSI) retreated 0.7%, hit by a 1.9% fall in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.2%, helped by a 1.3% rise in top lender Commercial International Bank (COMI.CA).
Egypt sold 626.4 million euros ($682.34 million) in one-year euro T-bills in an auction at an average yield of 4%, the central bank said on Monday.
Most stock markets in the Gulf ended lower on Monday as traders considered a slowdown in China, while falling oil prices added to the worries.
China's new bank loans tumbled in July and other key credit gauges also weakened, even after policymakers cut interest rates and promised to roll out more support for the faltering economy.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, snapping three sessions of gains, with Dr Sulaiman Al-Habib Medical Sevices (4013.SE) losing 1.9%.
Elsewhere, Saudi Awwal Bank (1060.SE) retreated 2.4% as the lender traded ex-dividend.
The Saudi stock market saw some downside risks as traders moved to selling another time, said Ahmed Negm, Head of Market Research MENA at XS.com.
"While the latest price corrections have undermined the market's strength, the main index remained on a positive performance for the year."
Dubai's main share index (.DFMGI) eased 0.1%, weighed down by a 1.2% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Abu Dhabi index (.FTFADGI) eased 0.3%, with the countyr's biggest lender First Abu Dhabi Bank (FAB.AD) losing 0.7%.
Oil prices - which fuels the Gulf's economy - slipped about 1% as concerns about China's faltering economic recovery and a stronger dollar, after seven weeks of gains driven by tightening supply from OPEC+ cuts.
In Qatar, the benchmark (.QSI) retreated 0.7%, hit by a 1.9% fall in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.2%, helped by a 1.3% rise in top lender Commercial International Bank (COMI.CA).
Egypt sold 626.4 million euros ($682.34 million) in one-year euro T-bills in an auction at an average yield of 4%, the central bank said on Monday.
Adnoc Weighs Boosting Covestro Bid Again to €11.6 Billion - Bloomberg
Adnoc Weighs Boosting Covestro Bid Again to €11.6 Billion - Bloomberg
Abu Dhabi National Oil Co. indicated it’s prepared to boost its informal offer for Covestro AG to about €11.6 billion ($12.7 billion) on the condition the German chemicals group agrees to enter formal talks, people with knowledge of the matter said.
The state-backed energy giant has verbally signaled to Covestro that it could come back with a new, written proposal of €60 per share, should such a bump get negotiations started, the people said. An offer at that level would represent a premium of about 29% to Covestro’s closing share price on Friday.
Covestro’s management and supervisory board are considering their options and may respond as soon as this week, the people said. Shares in Covestro rose as much as 8.8% on Monday. The stock was up 5% at 2:23 p.m. in Frankfurt, giving the company a market value of about €9.4 billion.
Any such move by Adnoc would improve previous informal bids of €55 and €57 per share. The most recent of these, submitted in July, is still seen as too low by Covestro, according to the people. Both companies and their advisers have continued to discuss the merits of a transaction, they said.
As well as price, Adnoc has been trying to address other Covestro concerns about a transaction, including how it would help the German company’s management develop the specialty chemical operations, Bloomberg News reported previously.
Abu Dhabi National Oil Co. indicated it’s prepared to boost its informal offer for Covestro AG to about €11.6 billion ($12.7 billion) on the condition the German chemicals group agrees to enter formal talks, people with knowledge of the matter said.
The state-backed energy giant has verbally signaled to Covestro that it could come back with a new, written proposal of €60 per share, should such a bump get negotiations started, the people said. An offer at that level would represent a premium of about 29% to Covestro’s closing share price on Friday.
Covestro’s management and supervisory board are considering their options and may respond as soon as this week, the people said. Shares in Covestro rose as much as 8.8% on Monday. The stock was up 5% at 2:23 p.m. in Frankfurt, giving the company a market value of about €9.4 billion.
Any such move by Adnoc would improve previous informal bids of €55 and €57 per share. The most recent of these, submitted in July, is still seen as too low by Covestro, according to the people. Both companies and their advisers have continued to discuss the merits of a transaction, they said.
As well as price, Adnoc has been trying to address other Covestro concerns about a transaction, including how it would help the German company’s management develop the specialty chemical operations, Bloomberg News reported previously.
Canada's Billionaire Desmarais Family Brings on Retail Investors to Sagard - Bloomberg
Canada's Billionaire Desmarais Family Brings on Retail Investors to Sagard - Bloomberg
Sagard Holdings, the alternative asset manager controlled by Canada’s billionaire Desmarais family, is working to boost sales of its private-asset funds to retail investors.
Sagard struck a deal last month to bring on Bank of Montreal and Abu Dhabi sovereign wealth fund ADQ as minority investors in the firm. When complete, the transaction will dilute Power Corp. of Canada’s ownership of Sagard to just over 50%, the company disclosed Friday. But it will mean new avenues of growth, Power Chief Executive Officer Jeffrey Orr said.
“The BMO partnership might help” with retail distribution, Orr told analysts on Friday. “I think a lot of the growth over the next decade is going to come not just from institutions, but it’s going to come from high net worth, ultra-high net worth and retail channels.”
Sagard and its sister company, Power Sustainable, offer a variety of investment strategies, including private equity, private credit, green energy and real estate funds. Sagard also has a venture capital arm that’s focused on financial-technology startups.
Sagard Holdings, the alternative asset manager controlled by Canada’s billionaire Desmarais family, is working to boost sales of its private-asset funds to retail investors.
Sagard struck a deal last month to bring on Bank of Montreal and Abu Dhabi sovereign wealth fund ADQ as minority investors in the firm. When complete, the transaction will dilute Power Corp. of Canada’s ownership of Sagard to just over 50%, the company disclosed Friday. But it will mean new avenues of growth, Power Chief Executive Officer Jeffrey Orr said.
“The BMO partnership might help” with retail distribution, Orr told analysts on Friday. “I think a lot of the growth over the next decade is going to come not just from institutions, but it’s going to come from high net worth, ultra-high net worth and retail channels.”
Sagard and its sister company, Power Sustainable, offer a variety of investment strategies, including private equity, private credit, green energy and real estate funds. Sagard also has a venture capital arm that’s focused on financial-technology startups.
#Dubai Property Prices Show Boom Spreading From Prime Districts to Suburbs - Bloomberg
Dubai Property Prices Show Boom Spreading From Prime Districts to Suburbs - Bloomberg
A rally in Dubai’s residential property market that lifted prices for luxury developments in prime districts to record highs is starting to spread to the city’s periphery.
The metropolis, whose most popular neighborhoods run parallel to the shores of the Persian Gulf, is now seeing rising demand for homes in districts stretching eastward into the desert. Transactions in some areas of secondary locations like Silicon Oasis and Sports City — that had remained more affordable — have hit record highs, according to real estate valuation and research firm ValuStrat.
“Affordability is the main driver as everything is becoming more expensive,” said Haider Tuaima, director and head of real estate research at the Dubai-based firm. “Investors are now paying more for less space than they would have three years ago.”
Dubai’s real estate rebound comes after a seven year slump and has been fueled by an influx of newcomers — from crypto millionaires and bankers relocating from Asia to wealthy Russians seeking to shield assets.
A rally in Dubai’s residential property market that lifted prices for luxury developments in prime districts to record highs is starting to spread to the city’s periphery.
The metropolis, whose most popular neighborhoods run parallel to the shores of the Persian Gulf, is now seeing rising demand for homes in districts stretching eastward into the desert. Transactions in some areas of secondary locations like Silicon Oasis and Sports City — that had remained more affordable — have hit record highs, according to real estate valuation and research firm ValuStrat.
“Affordability is the main driver as everything is becoming more expensive,” said Haider Tuaima, director and head of real estate research at the Dubai-based firm. “Investors are now paying more for less space than they would have three years ago.”
Dubai’s real estate rebound comes after a seven year slump and has been fueled by an influx of newcomers — from crypto millionaires and bankers relocating from Asia to wealthy Russians seeking to shield assets.
#Dubai-Based Shuaa Capital’s Top Investors Are Exploring Sale - Bloomberg
Dubai-Based Shuaa Capital’s Top Investors Are Exploring Sale - Bloomberg
Shuaa Capital PSC’s main shareholders are in early-stage talks to sell down their stakes in the Dubai-based investment bank, offering potential buyers access to one of the Gulf region’s oldest financial institutions.
As part of the plans, the bank’s Managing Director Jassim Alseddiqi — one of the top shareholders with about a 25% stake — plans to pare down his holdings and step down to focus on a career in technology, research and academia. Other major holders are also in talks to sell down their stakes, according to people familiar with the matter.
“In line with this transition and my evolving direction and endeavors, I’ve decided to reposition my stake in Shuaa Capital, paving the way for new shareholders,” Alseddiqi said in a post on LinkedIn.
Shareholders including Alseddiqi, who collectively own more than 50% of the bank’s shares, are in talks with several potential advisers including Lazard Ltd., people familiar with the matter said, asking not to be identified because the information is private. The shareholders’ preference would be for a single strategic buyer or consortium, but might eventually decide not to sell, or only part with some of their holdings, the people said.
Representatives for Shuaa and Lazard weren’t immediately available for comment.
Founded in 1979, Shuaa has been involved in landmark transactions such as the $5 billion Dubai initial public offering of global ports operator DP World in 2007. In recent years, the firm has undergone several restructurings, ownership and management changes.
More recently, the bank is trying to rebuild its investment banking franchise again by hiring former Credit Suisse bankers. The firm’s market capitalization exceeds 1 billion dirhams ($272 million) and it has close to $5 billion in assets under management.
Shuaa Capital PSC’s main shareholders are in early-stage talks to sell down their stakes in the Dubai-based investment bank, offering potential buyers access to one of the Gulf region’s oldest financial institutions.
As part of the plans, the bank’s Managing Director Jassim Alseddiqi — one of the top shareholders with about a 25% stake — plans to pare down his holdings and step down to focus on a career in technology, research and academia. Other major holders are also in talks to sell down their stakes, according to people familiar with the matter.
“In line with this transition and my evolving direction and endeavors, I’ve decided to reposition my stake in Shuaa Capital, paving the way for new shareholders,” Alseddiqi said in a post on LinkedIn.
Shareholders including Alseddiqi, who collectively own more than 50% of the bank’s shares, are in talks with several potential advisers including Lazard Ltd., people familiar with the matter said, asking not to be identified because the information is private. The shareholders’ preference would be for a single strategic buyer or consortium, but might eventually decide not to sell, or only part with some of their holdings, the people said.
Representatives for Shuaa and Lazard weren’t immediately available for comment.
Founded in 1979, Shuaa has been involved in landmark transactions such as the $5 billion Dubai initial public offering of global ports operator DP World in 2007. In recent years, the firm has undergone several restructurings, ownership and management changes.
More recently, the bank is trying to rebuild its investment banking franchise again by hiring former Credit Suisse bankers. The firm’s market capitalization exceeds 1 billion dirhams ($272 million) and it has close to $5 billion in assets under management.
Most Gulf markets track oil, Asian shares lower | Reuters
Most Gulf markets track oil, Asian shares lower | Reuters
Most major stock markets in the Gulf fell in early trade on Monday, tracking oil prices and Asian shares lower, with the Saudi index on course to snap a three-session rally.
Oil prices - a key catalyst for the Gulf's financial markets - declined more than 1% as concerns about China's faltering economic recovery and a stronger dollar weighed against seven weeks of gains on tightening supply from OPEC+ output cuts.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) lost 1.7% as China's property woes amplified the case for serious stimulus even as Beijing seems deaf to the calls.
Saudi Arabia's benchmark index (.TASI) fell 0.3%, on course to snap three sessions of gains, with Saudi Awwal Bank (1060.SE) retreating 2.4% as the lender traded ex-dividend.
Among other laggards, oil giant Saudi Aramco (2222.SE) fell 0.4%, while Saudi Arabian Mining Co (1211.SE) declined 1% following a steep fall in second-quarter profit.
Dubai's main share index (.DFMGI) eased 0.2%, with utility firm Dubai Electricity and Water Authority (DEWAA.DU) losing 0.8%.
The Qatari benchmark (.QSI) dropped 0.1%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) falling 1%.
Separately, the foreign reserves of the central bank of Qatar reached 241.6 billion Qatari riyals ($66.32 billion) at the end of July - the bank said in a statement on Sunday.
In Abu Dhabi, the index (.FTFADGI), however, bucked the trend to trade 0.3% higher.
Most major stock markets in the Gulf fell in early trade on Monday, tracking oil prices and Asian shares lower, with the Saudi index on course to snap a three-session rally.
Oil prices - a key catalyst for the Gulf's financial markets - declined more than 1% as concerns about China's faltering economic recovery and a stronger dollar weighed against seven weeks of gains on tightening supply from OPEC+ output cuts.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) lost 1.7% as China's property woes amplified the case for serious stimulus even as Beijing seems deaf to the calls.
Saudi Arabia's benchmark index (.TASI) fell 0.3%, on course to snap three sessions of gains, with Saudi Awwal Bank (1060.SE) retreating 2.4% as the lender traded ex-dividend.
Among other laggards, oil giant Saudi Aramco (2222.SE) fell 0.4%, while Saudi Arabian Mining Co (1211.SE) declined 1% following a steep fall in second-quarter profit.
Dubai's main share index (.DFMGI) eased 0.2%, with utility firm Dubai Electricity and Water Authority (DEWAA.DU) losing 0.8%.
The Qatari benchmark (.QSI) dropped 0.1%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) falling 1%.
Separately, the foreign reserves of the central bank of Qatar reached 241.6 billion Qatari riyals ($66.32 billion) at the end of July - the bank said in a statement on Sunday.
In Abu Dhabi, the index (.FTFADGI), however, bucked the trend to trade 0.3% higher.