Saudi Savola Said to Weigh $5.4 Billion Almarai Stake Sale - Bloomberg
Almarai Co.’s top investor is exploring options for its $5.4 billion holding in the Middle East’s largest dairy firm, according to people with knowledge of the matter, in what could be one of the region’s biggest merger and acquisition deals.
Stakeholders at Saudi Arabian food-processing firm Savola Group are working with US investment bank Moelis & Co. to find potential suitors for part or all of its 35% stake in Riyadh-based Almarai, the people said, asking not to be identified because the information is private.
Shares in Savola jumped almost 10%, the most since March 2020. Almarai stock fell more than 2% to the lowest level since June at 2.28p.m. in Riyadh.
Talks are at an early stage and Savola may decide not to sell, the people said. Representatives for Savola and Almarai didn’t immediately respond to requests for comment. A representative for Moelis declined to comment.
Savola’s stake in Almarai is worth about $5.4 billion based on Monday’s trading. At roughly $5 billion, Savola’s own market capitalization is slightly lower than that. The kingdom’s Public Investment Fund has a 16% holding in Almarai via a subsidiary.
Monday, 16 October 2023
Investors head to Riyadh in shadow of Israel-Hamas war | Reuters
Investors head to Riyadh in shadow of Israel-Hamas war | Reuters
Saudi Arabia holds an investment conference next week that is set to be overshadowed by the Israel and Hamas war, in a reminder of the challenge facing the kingdom as it bids to attract foreign investors, be they Western companies or newly courted Chinese business.
The conflict could upset the stability of the Middle East just as Saudi Arabia pours hundreds of billions of dollars into a vast economic transformation plan.
More than 5,000 people have registered to attend the annual Future Investment Initiative (FII) and only two have withdrawn due to current events, the FII Institute told Reuters.
"FII7 is going ahead as planned," it said. "The news about conflict in the Middle East is awful, and demonstrates why it is so important for leaders and policy makers to come together to tackle global issues that confront humanity," it added.
Saudi Arabia holds an investment conference next week that is set to be overshadowed by the Israel and Hamas war, in a reminder of the challenge facing the kingdom as it bids to attract foreign investors, be they Western companies or newly courted Chinese business.
The conflict could upset the stability of the Middle East just as Saudi Arabia pours hundreds of billions of dollars into a vast economic transformation plan.
More than 5,000 people have registered to attend the annual Future Investment Initiative (FII) and only two have withdrawn due to current events, the FII Institute told Reuters.
"FII7 is going ahead as planned," it said. "The news about conflict in the Middle East is awful, and demonstrates why it is so important for leaders and policy makers to come together to tackle global issues that confront humanity," it added.
Most Gulf shares slip as Mideast conflict rages on | Reuters
Most Gulf shares slip as Mideast conflict rages on | Reuters
Most stock markets in the Gulf were down on Monday amid concern over escalating violence in Gaza and the fear that the conflict could spread beyond Israel and Hamas into the region.
Israel has imposed a full blockade and is preparing a ground invasion to enter Gaza and destroy Hamas, which has continued to fire rockets at Israel since its brief cross-border assault.
Dubai's benchmark index (.DFMGI) dropped 0.6%, dragged down by losses in the finance and communications sectors with Emaar Properties (EMAR.DU) slumping 2.8% and Dubai Islamic Bank (DISB.DU) sliding 1.6%.
The Qatari index (.QSI) was down 0.8%, ending its four-session winning streak with most stocks in the red.
Industries Qatar (IQCD.QA) dropped 1.2% and Qatar Islamic Bank (QISB.QA) lost 1.3%.
In Abu Dhabi, the benchmark index (.FTFADGI) fell marginally with Multiply Group (MULTIPLY.AD) and Abu Dhabi Commercial Bank (ADCB.AD) shedding 1.1%. However, Alpha Dhabi (ALPHADHABI.AD) rose 2.7% and ADNOC Gas (ADNOCGAS.AD) gained 1.6%.
Saudi Arabia's benchmark index (.TASI) ended 0.8% higher, supported by gains in most sectors with Saudi Telecom (7010.SE) gaining 2.8% and Savola Group (2050.SE) advancing 10%.
"The Saudi stock market stabilized to a certain extent after seeing significant losses during the last three months," said George Khoury, Global Head of Education and Research at CFI.
Separately, Saudi Arabia's annual inflation eased to 1.7% in September from 2% the previous month, government data showed on Sunday.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was up for a third straight session, surging 3.5%, the highest climb in nearly six months.
The index was lifted by gains in almost all stocks with Abu Qir Fertilizers and Chemical Industries(ABUK.CA) shooting up 18.6% and Misr Fertilizers Production Co (MFPC.CA) climbing 20%.
Most stock markets in the Gulf were down on Monday amid concern over escalating violence in Gaza and the fear that the conflict could spread beyond Israel and Hamas into the region.
Israel has imposed a full blockade and is preparing a ground invasion to enter Gaza and destroy Hamas, which has continued to fire rockets at Israel since its brief cross-border assault.
Dubai's benchmark index (.DFMGI) dropped 0.6%, dragged down by losses in the finance and communications sectors with Emaar Properties (EMAR.DU) slumping 2.8% and Dubai Islamic Bank (DISB.DU) sliding 1.6%.
The Qatari index (.QSI) was down 0.8%, ending its four-session winning streak with most stocks in the red.
Industries Qatar (IQCD.QA) dropped 1.2% and Qatar Islamic Bank (QISB.QA) lost 1.3%.
In Abu Dhabi, the benchmark index (.FTFADGI) fell marginally with Multiply Group (MULTIPLY.AD) and Abu Dhabi Commercial Bank (ADCB.AD) shedding 1.1%. However, Alpha Dhabi (ALPHADHABI.AD) rose 2.7% and ADNOC Gas (ADNOCGAS.AD) gained 1.6%.
Saudi Arabia's benchmark index (.TASI) ended 0.8% higher, supported by gains in most sectors with Saudi Telecom (7010.SE) gaining 2.8% and Savola Group (2050.SE) advancing 10%.
"The Saudi stock market stabilized to a certain extent after seeing significant losses during the last three months," said George Khoury, Global Head of Education and Research at CFI.
Separately, Saudi Arabia's annual inflation eased to 1.7% in September from 2% the previous month, government data showed on Sunday.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was up for a third straight session, surging 3.5%, the highest climb in nearly six months.
The index was lifted by gains in almost all stocks with Abu Qir Fertilizers and Chemical Industries(ABUK.CA) shooting up 18.6% and Misr Fertilizers Production Co (MFPC.CA) climbing 20%.
#Saudi Wealth Fund Plans Debut Sukuk Just as Mideast Tension High - Bloomberg
Saudi Wealth Fund Plans Debut Sukuk Just as Mideast Tension High - Bloomberg
Saudi Arabia’s sovereign wealth fund is planning to sell a debut Islamic dollar bond at a time of elevated tensions in the Middle East.
The Public Investment Fund aims to sell senior unsecured sukuk bonds in five-year and 10-year tranches, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. Investor calls will start on Monday.
It’s the wealth fund’s second debt sale this year, following a $5.5 billion offering of green bonds in February. Those bonds have since come under pressure, with high volatility in the past week amid concerns that a conflict between Israel and Hamas could escalate in the region.
The PIF, which manages over $700 billion in assets, mandated Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc as joint global coordinators of the deal, the person said. A sale will follow, subject to market conditions.
Saudi Arabia’s sovereign wealth fund is planning to sell a debut Islamic dollar bond at a time of elevated tensions in the Middle East.
The Public Investment Fund aims to sell senior unsecured sukuk bonds in five-year and 10-year tranches, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. Investor calls will start on Monday.
It’s the wealth fund’s second debt sale this year, following a $5.5 billion offering of green bonds in February. Those bonds have since come under pressure, with high volatility in the past week amid concerns that a conflict between Israel and Hamas could escalate in the region.
The PIF, which manages over $700 billion in assets, mandated Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc as joint global coordinators of the deal, the person said. A sale will follow, subject to market conditions.
Oil prices steady above $90 as investors assess Israel-Hamas war | Reuters
Oil prices steady above $90 as investors assess Israel-Hamas war | Reuters
Brent oil futures steadied above $90 a barrel on Monday after passing the threshold on Friday, as investors waited to see if the Israel-Hamas conflict draws in other countries.
Brent futures were down 39 cents, or 0.43%, at $90.50 a barrel at 0855 GMT. U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.3%, to $87.43 a barrel.
Both benchmarks climbed nearly 6% on Friday, taking Brent 7.5% higher on the week and WTI up 5.9%, as investors priced in the possibility of a wider Middle East conflict.
Brent oil futures steadied above $90 a barrel on Monday after passing the threshold on Friday, as investors waited to see if the Israel-Hamas conflict draws in other countries.
Brent futures were down 39 cents, or 0.43%, at $90.50 a barrel at 0855 GMT. U.S. West Texas Intermediate (WTI) crude fell 26 cents, or 0.3%, to $87.43 a barrel.
Both benchmarks climbed nearly 6% on Friday, taking Brent 7.5% higher on the week and WTI up 5.9%, as investors priced in the possibility of a wider Middle East conflict.
Major Gulf bourses retreat on Gaza situation | Reuters
Major Gulf bourses retreat on Gaza situation | Reuters
Major stock markets in the Gulf fell in early trade on Monday amid heightened anxiety over escalating violence in Gaza and the prospect that the conflict could spread beyond Israel and Hamas into the region.
Authorities in Gaza said at least 2,670 people had so far been killed by Israeli strikes, a quarter of them children, and nearly 10,000 wounded. Another 1,000 people were missing and believed to be under rubble.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, on course to extend losses from the previous session, with auto rental firm Lumi (4262.SE) falling 0.8%.
Oil prices - which fuel the Gulf economy - slipped after surging last week, with investors waiting to see whether the Israel-Hamas conflict draws in other countries. Such a development could drive up prices further and deal a fresh blow to the global economy.
However, oil giant Saudi Aramco (2222.SE) rose 0.2%.
Dubai's main share index (.TASI) declined 0.7%, dragged down by a 1.7% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 3.4% decrease in Tecom Group (TECOM.DU).
Separately, the United Arab Emirates and South Korea have concluded talks towards a bilateral trade deal, known as a Comprehensive Economic Partnership Agreement (CEPA), the two countries said on Saturday.
In Abu Dhabi, the index (.FTFADGI) retreated 0.4%.
The Qatari benchmark (.QSI) lost 0.5%, with petrochemical maker Industries Qatar (IQCD.QA) losing 1%.
Israel said on Monday no ceasefire had been implemented in southern Gaza, even though security sources in Egypt said a deal had been reached to allow foreigners out of the besieged Palestinian enclave and aid to be brought in.
Major stock markets in the Gulf fell in early trade on Monday amid heightened anxiety over escalating violence in Gaza and the prospect that the conflict could spread beyond Israel and Hamas into the region.
Authorities in Gaza said at least 2,670 people had so far been killed by Israeli strikes, a quarter of them children, and nearly 10,000 wounded. Another 1,000 people were missing and believed to be under rubble.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, on course to extend losses from the previous session, with auto rental firm Lumi (4262.SE) falling 0.8%.
Oil prices - which fuel the Gulf economy - slipped after surging last week, with investors waiting to see whether the Israel-Hamas conflict draws in other countries. Such a development could drive up prices further and deal a fresh blow to the global economy.
However, oil giant Saudi Aramco (2222.SE) rose 0.2%.
Dubai's main share index (.TASI) declined 0.7%, dragged down by a 1.7% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 3.4% decrease in Tecom Group (TECOM.DU).
Separately, the United Arab Emirates and South Korea have concluded talks towards a bilateral trade deal, known as a Comprehensive Economic Partnership Agreement (CEPA), the two countries said on Saturday.
In Abu Dhabi, the index (.FTFADGI) retreated 0.4%.
The Qatari benchmark (.QSI) lost 0.5%, with petrochemical maker Industries Qatar (IQCD.QA) losing 1%.
Israel said on Monday no ceasefire had been implemented in southern Gaza, even though security sources in Egypt said a deal had been reached to allow foreigners out of the besieged Palestinian enclave and aid to be brought in.