Dubai-based investment consortium, Adeptio LLC led by Mohammad Alabbar, Chairman of Emaar Properties has agreed to buy share of 69% in Americana Group; Kuwait Food Co.
In the Middle East and North African (MENA) region, Americana is the largest company which operates restaurants, markets and manufactures consumer foods. It is also one of the most successful franchise operators across the globe.
Favorite brands, which come under the umbrella of Americana, are Krispy Kreme, Baskin Robbins, Hardee’s, Costa Coffee and the Middle East franchises of food giants; Pizza Hut and KFC. It operates in 13 countries, with more than 63,000 employees from 21 nationalities.
Kuwait Food Co. has been acquired for about $2.4 billion from Al-Khair National Stocks and Real Estate, a holding company owned by Al Kharafi family.
Al-Khair is a subsidiary of M.A. Kharafi & Sons, which was founded in 1956 by Mohammed Abdul Mohsen Al-Kharafi.
For the past two years, Al Khair has been putting efforts into selling Al Kharafi’s controlling stake in Americana. Adeptio LLC previously agreed in February to purchase the stake, but the deal eventually collapsed in the last days of May. The deal was renewed again henceforth.
Adeptio has said that shares are being bought at the price of 2.650-dinars/ shares; the value is 26% higher than Kuwait Food’s last closing price.
About the Kuwaiti securities rules, after all, shares will be bought; Adeptio will launch a mandatory takeover offer at the same price for the remaining Americana shares.
The deal has been co-financed by a bridge loan of $1.5 billion from a set of banks, which includes First Gulf Bank, Emirates NBPD, Credit Suisse and Standard Chartered.
In the past, Singapore’s sovereign wealth fund Temasek Holdings in partnership with Saudi-based food company Savola made an offer of $4 billion to acquire the shares, but their offer was rejected.
Private equity firms CVC Capital Partners Ltd. and KKR & Co. also tried to purchase the 69% share of Americana owned by Al-Kharafi, but their efforts did not bear any results as well.
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