ADNOC may offer 20% stake, raise up to $2.8 billion

A worker injects a car with fuel at an ADNOC petrol station in Abu Dhabi, United Arab Emirates. (Reuters)
Updated 20 November 2017

ADNOC may offer 20% stake, raise up to $2.8 billion

DUBAI/ABU DHABI: Abu Dhabi National Oil Co. (ADNOC) said on Monday it may sell as much as a 20 percent stake in its fuel distribution unit, potentially raising up to $2.8 billion.
Analysts have valued the total fuel distribution unit at between $11 and $14 billion in research reports prepared by banks advising the firm on the planned listing, sources have told Reuters.
Abu Dhabi is pushing its state companies to list on the bourse, hoping to lure foreign investors with privatizations after lower energy prices depleted its coffers.
The companies are aiming to complete some of their listings before Saudi Arabia’s IPO of its crown jewel Saudi Aramco in late 2018, as part of a wider multi-billion dollar privatization program, bankers say.
State fund Mubadala Investment Co. said last month it expects to list its unit Emirates Global Aluminium (EGA), one of the world’s biggest aluminum producers, next year.
ADNOC is offering a minimum 10 percent stake, or 1.25 billion shares, and a maximum 20 percent stake, or 2.5 billion shares, in the IPO of ADNOC Distribution, it said in a filing.
A larger float may help ADNOC’s distribution unit become part of the MSCI emerging market index, attracting more foreign fund flows, said one source familiar with the matter.
Abu Dhabi’s national oil company last week unveiled details of ADNOC Distribution’s listing, as Gulf states step up plans to privatise energy assets in an era of cheap oil.
The ADNOC unit’s float comes as Saudi Arabia plans to list 5 percent of its national oil company Aramco by the end of next year, which Saudi officials say could raise $100 billion, making it the world’s biggest IPO.
Citigroup, First Abu Dhabi Bank, HSBC and Bank of America Merrill Lynch are joint global coordinators for the ADNOC unit’s offer and also bookrunners alongside EFG Hermes, Goldman Sachs and Morgan Stanley.

France ready to take Trump’s tariff threat to WTO

Updated 08 December 2019

France ready to take Trump’s tariff threat to WTO

  • Macron government will discuss a global digital tax with Washington at the OECD, says finance minister

PARIS: France is ready to go to the World Trade Organization to challenge US President Donald Trump’s threat to put tariffs on French goods in a row over a French tax on internet companies, its finance minister said on Sunday.

“We are ready to take this to an international court, notably the WTO, because the national tax on digital companies touches US companies in the same way as EU or French companies or Chinese. It is not discriminatory,” Finance Minister Bruno Le Maire told France 3 television. Paris has long complained about US digital companies not paying enough tax on revenues earned in France.

In July, the French government decided to apply a 3 percent levy on revenue from digital services earned in France by firms with more than €25 million in French revenue and €750 million ($845 million) worldwide. It is due to kick in retroactively from the start of 2019.

Washington is threatening to retaliate with heavy duties on imports of French cheeses and luxury handbags, but France and the EU say they are ready to retaliate in turn if Trump carries out the threat. Le Maire said France was willing to discuss a global digital tax with the US at the Organization for Economic Cooperation and Development (OECD), but that such a tax could not be optional for internet companies.

“If there is agreement at the OECD, all the better, then we will finally have a global digital tax. If there is no agreement at OECD level, we will restart talks at EU level,” Le Maire said.

He added that new EU Commissioner for Economy Paolo Gentiloni had already proposed to restart such talks.

France pushed ahead with its digital tax after EU member states, under the previous executive European Commission, failed to agree on a levy valid across the bloc after opposition from Ireland, Denmark, Sweden and Finland.

The new European Commission assumed office on Dec. 1.