Abraaj eyes Turkish hospital stake sale
Dubai, October 24, 2011
Abraaj Capital, the Middle East's largest private equity firm, expects to complete the sale of its stake in Turkish hospital group Acibadem by the end of 2011, its chief executive said on Monday.
Abraaj, which manages assets of around $6 billion, has a 46 per cent stake in a joint venture company Almond Holding, which controls 92 per cent of Acibadem. Bank of America-Merrill Lynch and Goldman Sachs have been advising Abraaj on the sale.
Malaysian state fund Khazanah Nasional is in talks to buy a stake in Acibadem, in a deal worth at least $500 million, two sources with direct knowledge of the deal told Reuters.
'We received a couple of strategic approaches and also considered other strategic offers for the Turkish asset,' Mustafa Abdel-Wadood, CEO of Abraaj Capital said, speaking at the Reuters Middle East Investment Summit.
When asked if Abraaj would complete the Turkey deal by the end of the year, Abdel-Wadood said 'that is the intention we're working towards'.
The private equity firm is also looking to partially exit another investment by the end of the year and is evaluating initial public offerings for two others in 2012, the executive said without providing additional details.
'There might be a couple (of IPOs) we could consider for 2012,' said Abdel-Wadood.
Abraaj, plans to sell up to four of its investments in the next 18 months, a senior executive said earlier in the month.
The Mena region is important investment areas for private equity firms, which have raised $22.7 billion to invest into the area in the past five years, according to figures from London-based research firm Preqin.-Reuters