Emirates NBD makes bid for sale of Blom Egypt

Emirates NBD makes bid for sale of Blom Egypt
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Updated 02 November 2020

Emirates NBD makes bid for sale of Blom Egypt

Emirates NBD makes bid for sale of Blom Egypt

CAIRO: Banking sources revealed that Emirates NBD, listed on the Dubai Financial Market, is in talks with Lebanese Blom Bank management to make an offer to buy its unit in Egypt.

The Bahraini Arab Banking Corporation is competing for the acquisition of Blom Egypt and is conducting due diligence work on the deal, which is expected to end in mid-November.

Reports said that NBD estimates the value of Blom Bank Egypt at about 6.5 to 7 billion Egyptian pounds ($413 to $444 million), about one-and-a-half times the total ownership rights in the bank.

ABC Bahrain began the due diligence procedures in late September.

Gov. of the Central Bank Tarek Amer said in previous statements that the Central Bank is fully committed to the rights of merged banks employees, including employees of the Lebanese Blom Bank in Egypt, and that the matter is the original responsibility of the Central Bank.

His comments came after a number of Blom Bank Egypt employees submitted a request to preserve their rights after the completion of the sale process, which is likely to result in the merger of Blom Egypt with the bank of the buying party.

Lebanese Blom Bank, the main owner of Blom Bank Egypt, said that a request has been submitted to the Central Bank of Egypt to obtain the necessary approvals.

The Lebanese Blom Group needs about $240 million to increase its capital to comply with the instructions of the Lebanese government. This prompted the bank to announce the sale of its units in Egypt, which represent 46 percent of the group’s total profits.

Lebanese banks are seeking to boost their finances at a time when the country faces its worst financial crisis since the civil war.

Blom Bank Egypt is affiliated with the Blom Bank Group and began operating in Egypt in 2005. It has about 41 branches, and its paid-up capital amounts to 2 billion Egyptian pounds, according to its website.

Sources said that the UAE bank is looking to strengthen its presence in the Egyptian banking sector, which it already operates in through Emirates NBD Egypt (formerly BNP Paribas).

Blom Bank, one of Lebanon’s largest banks, confirmed that it is studying strategic options, including selling its stake in Blom Bank Egypt due to adverse business conditions in Beirut, and to abide by the decisions of the Central Bank of Lebanon to increase the capital.

In a press release, the bank added that a request was submitted to the Central Bank of Egypt to obtain necessary approvals, and the Central Bank of Egypt has agreed to start the process of due diligence examination.

Sources said the deal will likely be complete within weeks, adding that there are several advisers available, including international bank HSBC and CI Capital holding for financial advice, and the Baker McKenzie Fund for legal advice.


Fertiglobe IPO on track for $6 billion valuation as share subscription ends

Fertiglobe IPO on track for $6 billion valuation as share subscription ends
Updated 11 sec ago

Fertiglobe IPO on track for $6 billion valuation as share subscription ends

Fertiglobe IPO on track for $6 billion valuation as share subscription ends
  • The firm, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI formed in 2019, plans to raise between $765 million and $827 million giving it a valuation of $5.5 billion and $6 billion.

Demand for shares in fertilizer group Fertiglobe ended on Monday, with 114.6 million shares allocated on the Abu Dhabi stock market, and the firm on track for a $6 billion valuation, Al-Arabiya reported.

The firm, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI formed in 2019, plans to raise between $765 million and $827 million giving it a valuation of $5.5 billion and $6 billion.

It has set a price range of 2.45 to 2.65 dirhams for the stock, with Al-Arabiya reporting it is on track to price its shares at the top of the range, citing unnamed sources.

The amount of shares allocated is equivalent to 13.8 percent of the business.

Subscription for Fertiglobe shares began on 13 October, with two tranches, of stock offered to investors.

Final pricing of the stock will be set on 20 October, with shares scheduled to start trading on the Abu Dhabi Securities Exchange on 27 October, according to a company statement.

 


Mobily profits up by 40% in first nine months of 2021

Mobily profits up by 40% in first nine months of 2021
Updated 4 min 10 sec ago

Mobily profits up by 40% in first nine months of 2021

Mobily profits up by 40% in first nine months of 2021

RIYADH: Etihad Etisalat Co. (Mobily) profits jumped by 40 percent to SR751 million ($200.2 million) by the end of the first nine months of 2021, Argaam reported.

Mobily recorded profits of SR537 million during the same period in 2020.

Saudi Arabia's second mobile service provider witnessed profits of SR281 million in the third quarter.

 


Fashion firm Rent the Runway aims for nearly $1.3bn valuation in U.S. IPO

Fashion firm Rent the Runway aims for nearly $1.3bn valuation in U.S. IPO
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Updated 21 min 4 sec ago

Fashion firm Rent the Runway aims for nearly $1.3bn valuation in U.S. IPO

Fashion firm Rent the Runway aims for nearly $1.3bn valuation in U.S. IPO
  • Rent the Runway plans to sell 15 million shares priced between $18.00 and $21.00 apiece in its IPO

Rent the Runway is aiming for a valuation of nearly $1.3 billion in its U.S. initial public offering, as the fashion rental company looks to cash in on the rising interest in pre-owned clothing.


The company, founded in 2009, lets users rent and shop second-hand clothes and accessories such as handbags and jewelry in over 18,000 styles from more than 750 designer brands. It also allows customers to rent and shop home goods.


Rent the Runway plans to sell 15 million shares priced between $18.00 and $21.00 apiece in its IPO, raising $315 million, according to a filing.


Earlier this month, the Brooklyn, New York-based company disclosed a near 39 percent drop in revenue for the fiscal year 2020. Its top line also took a hit in the first half of this fiscal year, with revenue down 9 percent for the period ended July 31.


Rent the Runway said its active subscribers more than doubled to 111,732 in the first nine months of 2021.


Demand for second-hand clothes has jumped in recent months as customers become increasingly conscious about their carbon footprint, boosting revenues at styling service Stitch Fix and online resale shop ThredUp.


Goldman Sachs & Co, Morgan Stanley and Barclays are the lead underwriters for the offering. Rent the Runway will list its stock on the Nasdaq under the symbol "RENT".


Bitcoin nears record high ahead of futures ETF listing

Bitcoin nears record high ahead of futures ETF listing
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Updated 43 min 42 sec ago

Bitcoin nears record high ahead of futures ETF listing

Bitcoin nears record high ahead of futures ETF listing
  • ProShares' Bitcoin Strategy ETF is expected to list on Tuesday under the ticker BITO

Bitcoin hit a six-month high and was within striking distance of a record on Tuesday as traders bet an anticipated listing of a futures-based U.S. exchange traded fund could herald investment flows into bitcoin and cryptocurrency assets.


Bitcoin, the world's biggest cryptocurrency by market value, rose as far as 1.5 percent during the Asia session to $62,991, its strongest level since the record peak of $64,895 in April.


It is up some 40 percent in October on hopes that the advent of bitcoin exchange traded funds (ETF), of which several are in the works, will allow billions of dollars managed by pension funds and other institutional investors to flow into the sector.


ProShares' Bitcoin Strategy ETF is expected to list on Tuesday under the ticker BITO, provided the U.S. regulator, the Securities and Exchange Commission, does not object.


Analysts cautioned that the fund will not invest directly in bitcoin - rather in Chicago-traded futures - and so may not have any immediate implications for flows. But speculators have been wagering its launch is a positive signal for spot prices anyway.


Bitcoin futures rose on Tuesday, last trading at $62,690, and spot prices could rise if cash keeps flowing in, said cryptocurrency analysts at Arcane Research.


"This could lead to more constant buying pressure on CME, causing the open interest to rise. This will attract more cash and carry opportunities, leading to buying pressure in the spot market," they said in a note.


Crypto ETFs have launched this year in Canada and Europe amid surging interest in digital assets. VanEck and Valkyrie are among fund managers pursuing U.S.-listed ETF products, although Invesco on Monday dropped its plans for a futures-based ETF.


The Nasdaq on Friday approved the listing of the Valkyrie Bitcoin Strategy ETF and Grayscale, the world's largest digital currency manager, is planning to convert its Grayscale Bitcoin Trust into a spot bitcoin ETF, CNBC has reported.


ProShares ETF is set to begin trade on Tuesday after a 75-day period during which the SEC could object to its listing elapsed on Monday.


Ether the second-largest cryptocurrency, has tracked bitcoin's rise and also traded firmly on Tuesday. It was last up 1.2 percent at $3,790.
 


ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 

ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 
Updated 19 October 2021

ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 

ACWA Power among bidders of 1,200 MW Saudi renewable energy projects 

RIYADH: The Saudi Ministry of Energy announced the list of candidates for bids received from developers, participating in the third phase of renewable energy projects in the Kingdom, consisting of four independent generation projects (IPP) for solar photovoltaic energy with a total capacity of 1200 MW.

French Total Solar and ACWA Power are both candidates for the Wadi Al-Dawasir project with a capacity of 120 MW, while ACWA Power and AlFanar Energy Company are candidates for the Laila project with a capacity of 80 MW, under Category A.