Friday 22 March 2019

Crisis-hit Abraaj sells Orascom Construction stake for $52m

DUBAI, June 20, 2018

Dubai-based Abraaj Group has sold its entire stake in Egypt’s Orascom Construction for $52 million as the private equity firm seeks to restructure amid allegations of misused funds, reported Bloomberg.

Abraaj has been under pressure since February when some of its investors commissioned an audit to investigate the alleged mismanagement of money in its health-care fund, said the report.

The 5.4 per cent holding in Orascom Construction was sold at $8.30 per share, stated the report  citing an Abraaj statement on Nasdaq Dubai.

The buyout firm, which once managed almost $14 billion for institutions and supranational agencies from the US, UK and other countries, faces growing concerns about its viability and impending loan repayments, said the report.

Kuwait’s Public Institution for Social Security last week filed a petition for the liquidation of the holding firm, it added.

Tags: Dubai | Orascom Construction | Abraaj |

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