#AbuDhabi’s Multiply Buys Two Firms Creating $33 Billion Entity - Bloomberg

Abu Dhabi’s Multiply Buys Two Firms Creating $33 Billion Entity - Bloomberg

Multiply Group PJSC has agreed to acquire two other Abu Dhabi firms backed by the emirate’s largest listed company, in a share-swap transaction that it said will create an entity holding assets of about $33 billion.

Multiply will issue about 23.36 billion new shares to acquire 2PointZero and Ghitha Holding PJSC, it said Wednesday. Based on Multiply’s current share price, that’s worth around 72.4 billion dirhams ($19.7 billion).

“Together, we are forming an 120 billion dirham ($32.6 billion) balanced and diversified investment group spanning energy, food, logistics, packaging, mining, apparel, media, mobility and beauty,” Samia Bouazza, the group chief executive officer of Multiply, said in the statement.

All three firms have links to International Holding Co., the $239 billion conglomerate chaired by Sheikh Tahnoon bin Zayed Al Nahyan, brother of the United Arab Emirates’ ruler and the country’s national security adviser. IHC units own majority stakes in Multiply and Ghitha. 2PointZero was formed last year to hold portions of Sheikh Tahnoon’s sprawling business empire.

Multiply, which went public nearly four years ago, has invested in a diverse range of firms including Getty Images and Rihanna’s Savage x Fenty lingerie label.

Its shares dropped after the deal announcement. Still, it’s up about 49% this year, outperforming the Abu Dhabi benchmark’s 7% rise. Multiply has also been planning to list its media business.

2PointZero holds investments across energy, mining and financial services, and backs some of Abu Dhabi’s most prolific dealmakers, including Lunate, the $110 billion investment manager and International Resources Holding. The firm had been slated to be listed by the end of this year with a valuation of about $27 billion.

Shares of Ghitha, a food and agriculture platform, rose as much as 3.1%, extending its year-to-date gains to nearly 10%.