Saudi Arabia: Private Equity Firm Jadwa Puts UniPharma Stake on Sale - Bloomberg
Jadwa Investment Co. is looking to sell its stake in one of Saudi Arabia’s largest pharmaceutical groups, according to people familiar with the matter, offering buyers an opportunity to tap into a fast-growing segment of the kingdom’s economy.
The private equity firm is working with EFG Hermes to divest its 51% stake in UniPharma, the people said, asking not to be named as the information is private. Jadwa, which acquired the stake in UniPharma in 2020, is seeking a valuation of about 1 billion riyals ($267 million), they said.
The deal has been presented to both local and international private equity firms, as well as strategic buyers.
Representatives for Jadwa and EFG declined to comment.
The sale talks come amid a potential pause in Iran and Israel’s 12-day war, following a ceasefire announcement by US President Donald Trump. The conflict has so far not dented mergers and acquisitions activity, but bankers say deals could be put on hold if it drags on.
UniPharma is Saudi Arabia’s largest pharmaceutical wholesaler and operates a network of more than 70 retail outlets across the kingdom, according to Jadwa’s website.
Jadwa, one of Saudi Arabia’s most active investment managers, plans to raise up to 400 million riyals for new Middle East deals, a senior executive told Bloomberg News. That would bring total fundraising for its flagship blind pool fund to 1.7 billion riyals by year-end.
Managing about 100 billion riyals in client assets, Jadwa has recently exited investments in the kingdom’s largest dental and dermatology provider and a health-care group. The Gulf’s medical sector continues to grow, driven by rising incomes and significant government spending.
The number of private equity deals in the Middle East have nearly tripled from a decade ago, and assets under management have nearly doubled, according to researcher Preqin. Increased PE activity has the potential to further fuel deal volumes in the region, where Bain & Co. estimates overall M&A activity reached $29 billion last year.
No comments:
Post a Comment