al_masah_capital - pe_newsletter_december_2010.pdf

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The MENA region recorded increased deal activity in the private equity (PE) space in 2010 compared to the previous year; as value of deals rose

when compared to 2009. Although just one PE deal was booked in December 2010, the value of that deal was large enough to help the year’s

total deal value surpass the figure attained in 2009. A total of 27 PE deals amounting US$993 million have been executed in 2010 as against 27

deals valuing US$680.6 million the previous year. Improvement in global economic environment and lower valuations stimulated the growth in

the regional private equity space.

MENA PE Newsletter – December 2010

Saturday, January 08, 2011

MENA PE Deal space – 2010

Exhibit 1: PE Deal Value (US$ M) & Volume – 2009

Exhibit 2: PE Deal Value (US$ M) & Volume–2010

Source: Thomson ONE Banker, Zawya * * data taken till December 30, 2010

Exhibit 3: Top sectors by number of deals Exhibit 4: Top countries by number of deals

Source: Zawya, Note: We have excluded deals executed in Israel

In terms of total deal value and volume, the UAE emerged as the leader among countries in the MENA region in 2010. Six PE deals, estimated to

be worth US$816.5 million, including the largest deal in 2010 by Abraaj Capital worth around US$544 million, were completed in the country.

Among other countries, Egypt, Jordan and Saudi Arabia came second by recording five deals each; yet Jordan surpassed Saudi Arabia and Egypt in

terms of value; Jordan executed deals estimated to be worth US$109.8 million as compared to US$20 million in Saudi Arabia andUS$8.5 million in

Egypt.

Top countries in MENA PE deal activity – 2010

0

100

200

300

400

Jan

uar

y

Feb

ruar

y

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ch

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No

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0.0

1.5

3.0

4.5

Deal Value No. of deals

1Values of all the deals are not disclosed; this is the total disclosed value.

Excluding Other sectors (which have not been classified), Information Technology (IT) was the leading sector in the MENA PE deal space in 2010

which witnessed seven deals during the year. IT sector also witnessed the largest deal in the year worth US$544 million executed by the leading

PE fund—Abraaj Buyout Fund IV, in UAE. In terms of volume, Abraaj-Riyada Enterprise Development (RED) Growth Capital (SME) Fund executed

the highest number (two) deals in the IT sector in the UAE and Egypt. Media, and Consumer related sectors saw four deals each during the year,

while Health sector witnessed two deals. .

Top sectors in MENA PE deal activity – 2010

0

150

300

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Jan

uar

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Feb

ruar

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0.0

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Deal Value No. of deals

1.0 1.0

3.0 3.0

5.0 5.0 5.06.0

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8

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rain

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isia

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ano

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bia

Egyp

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UA

E

2.0

4.0 4.03.0

7.0

9.0

0

2

4

6

8

10

Industrial Media Consumer Health IT Others

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Just one PE deal was booked in December 2010. However, the value of this deal was the largest among all deals executed in this space in 2010. On

December 22, Abraaj Capital, announced acquisition of 49% stake in Dubai-based Network International LLC (Network), an independent payment

solutions provider in the Middle East and Africa region. Abraaj Capital would acquired a 49% stake in Network (a wholly owned subsidiary of Emir-

ates NBD, a leading bank in the region) for US$544.5 mln through Abraaj Financial Technologies Holdings Limited.

Deals in MENA PE space – December 2010

The details of the PE deals in MENA during December 2010 are given below:

Deals in MENA PE space – December 2010

Source: Thomson ONE Banker, Zawya Note: PE deals data taken till December 30, 2010

Exhibit 5: Deals in MENA PE space – December 2010

Company Name Investment Date Company Nation Deal Value (US$ Million) Sector Fund Name

Network International LLC December 22, 2010 United Arab Emirates 544.53 Information Technology Abraaj Capital— Abraaj Buyout Fund IV

Two exit transactions were recorded in the MENA region during December 2010, both by Global Capital Management’s PE funds. Global Oppor-

tunistic Fund I exited its investment in DEPA Limited (Depa Group), one of the world’s leading interior contracting companies, while Global Oppor-

tunistic Fund II sold its investment in Evergrande Real Estate Group (Evergrande).

MENA PE exit deals – December 2010

Source: Thomson ONE Banker, Zawya Note: PE deals data taken till December 30, 2010

Exhibit 6: Exit Deals in MENA PE space – December 2010

Company Name Exit Date Company Nation Deal Value (US$ Million) Sector Fund Name IRR

DEPA Limited December 19, 2010 UAE NA Interior Designing Global Opportunistic Fund I 23%

Evergrande Real Estate Group December 15, 2010 Hong Kong 61.2 Real Estate Global Opportunistic Fund II 35%

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NBK Capital, acquired a 20% stake in Turkey's largest aquaculture firm Kilic Deniz (Kiliç). The acquisition was done through its regional private

equity fund, NBK Capital Equity Partners Fund I. (December 28, 2010)

Abraaj Capital, announced acquisition of a 49% stake in Network International LLC, an independent payment solutions provider in the Middle East

and Africa region. The transaction executed through Abraaj Financial Technologies Holdings Limited is estimated at around AED2 billion.

(December 22, 2010)

Abraaj Capital announced its first ever acquisition through its new income-generating real estate fund, ASAS. The transaction entails acquisition of

a grade-A commercial office building in Cairo, Egypt. (December 21, 2010)

Global Opportunistic Fund I (GOF I), a private equity fund of Global Capital Management Limited, exited its investment in DEPA Limited (Depa

Group), one of the world’s leading interior contracting companies, thus producing an IRR of 23% on this investment. (December 19, 2010)

Mubadala Development Company (MDC), the Abu Dhabi government’s investment company, signed an agreement with The Carlyle Group, a

global private equity firm, to invest US$500 million. (December 16, 2010)

Global Opportunistic Fund II, a private equity fund of Global Capital Management Limited, concluded a profitable exit from its investment in Ever-

grande Real Estate Group (Evergrande), thereby realizing an IRR of 35% on this investment. (December 15, 2010)

Qatar Telecom, the country’s largest telecom operator, is in discussion with the Qatar Investment Authority to set up a joint telecom investment

fund. (December 12, 2010)

The Port Fund, a private equity fund of KGL Investment Company, announced that its portfolio company Negros Navigation Company, Inc.

(Negros) entered into an agreement with Aboitiz Group to acquire up to 100% of the outstanding common shares of Aboitiz Transport Systems

Corporation (ATS) wherein Negros is a controlling shareholder. (December 06, 2010)



MENA PE News Wrap-up—December 2010

Source: Zawya, press releases

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Exhibit 7: IPO Listings in MENA– 2010

Source: Zawya Note *: The offer size numbers have been converted using the current exchange rate (source—www.oanda.com) to US$ to facilitate comparisons

Issuer Country Exchange Sector Offer size* (US$

million) Equity

Offered Listing Date

Subscription (times)

1st Day Return

1 Month Return

Modern Leasing Tunisia Tunis SE Financial Ser-vices 6.1 25.0%

December 03, 2010 23.00 x 35.3% 44.6%

Aluminium Bahrain Bahrain Bahrain SE Mining and Metals 389.8 11.5%

November 30, 2010 1.00 x 1.7% 0.6%

Amer Group Egypt Egypt SE Real Estate 201.2 20.0% November 29,

2010 5.80 x 3.2% -1.8%

CNIA Saada Assurance Morocco Casablanca SE Financial Ser-vices 80.3 15.0%

November 22, 2010 7.46 x 33.0% 17.3%

Omani Qatari Telecom-munications Company Oman Muscat SM

Telecommunica-tions 474.6 40.0%

November 01, 2010 1.00 x 5.4% 4.3%

Abdullah A M Al Khodari Sons Company Saudi Arabia Saudi SE Construction 163.2 30.0%

October 23, 2010 1.00 x -2.5% -1.5%

Mazaya Qatar Real Estate Development Company Qatar Qatar SE Real Estate 144.1 50%

October 17, 2010 1.00 x -9.1% -17.1%

Al Jouf Cement Company Saudi Arabia Saudi SE Industrial Manu-facturing 173.3 50.0% August 11, 2010 2.00 x 24.5% 24.0%

Knowledge Economic City Company Saudi Arabia Saudi SE Real Estate 271.9 30.06% August 09,2010 1.73 x 3.0% -13.5%

ENNAKL Automobiles Tunisia Tunis SE Transport 63.6 30.0% July 13, 2010 23.00 x 72.6% -

Carthage Cement Tunisia Tunis SE Industrial Manu-facturing 92.9 49.76% June 22,2010 13.90 x 26.3% 76.8%

Amana for Cooperative Insurance Company Saudi Arabia Saudi SE

Financial Ser-vices 34.1 40% June 13,2010 4.52 x 35.5% 45.0%

Juhayna Food Industries Egypt Egypt SE Food and Bever-ages 171.1 39.57% June 09,2010 6.80 x

Solidarity Saudi Takaful Company Saudi Arabia Saudi SE

Financial Ser-vices 59.2 40% June 08, 2010 3.03 x 0.0% 5.5%

Wataniya Insurance Saudi Arabia Saudi SE Financial Ser-vices 8.0 30% June 06, 2010 20.00 x 0.0% 412.5%

Al Hassan Ghazi Ibrahim Shaker Company Saudi Arabia Saudi SE Consumer Goods 137.2 30% May 17, 2010 3.50 x 4.6% 25.0%

Tunis Re Tunisia Tunis SE Financial Ser-vices 9.6 22.22% May 11, 2010 30.00 x 42.9% 63.3%

Assurances SALIM Tunisia Tunis SE Financial Ser-vices 6.8 24.81% April 01,2010 28.49 x 43.4% 45.3%

Alsorayai Trading and Industrial Group Saudi Arabia Saudi SE

Industrial Manu-facturing 64.8 30%

February 22, 2010 4.57 x 22.6% 17.4%

Herfy Food Services Company Saudi Arabia Saudi SE

Food and Bever-ages 110.1 30%

February 02, 2010 2.41 x 15.7% 15.2%

MENA IPO Activity—2010

MENA region witnessed twenty IPO listings raising a total US$2.7 billion in 2010. In terms of volume, Saudi Arabia witnessed the largest number

of IPO listing (9), followed by Tunisia (5) and Egypt (2). Bahrain, Morocco, Oman and Qatar saw one IPO listing each during the year. In terms of

offer size, Oman’s Omani Qatari Telecommunications Company raised the maximum US$474.6 million in November, 2010 in the MENA region.

Bahrain’s Aluminium Bahrain (Alba) raised the second largest amount of US$389.8 million in December, 2010. In terms of sectors, the financial

services sector witnessed the highest (seven) listings during the year. Out of these seven, three IPOs got listed in Saudi Arabia, three in Tunisia,

and the remaining one was listed in Morocco. Real Estate and Industrial Manufacturing saw three IPO listings each, followed by Food and Bever-

ages in which two IPOs were listed. Mining & Metals, Telecommunications, Construction, Transport and Consumer Goods sectors witnessed one

IPO each during the year.

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Exhibit 8: Fund Raising in MENA– 2010

Source: Zawya

Fund Name Status Announced Date Fund Manager Fund Target Size (US$

million)

Al Masah MENA Growth PE Fund Fund Raising 2010 Al Masah Capital 500

EVI Capital Procurement Fund Fund Raising November 10, 2010 EVI Capital Partners 100

Intaj Capital II Fund Raising September 10, 2010 Swicorp 300

Abraaj-Riyada Enterprise Development (RED) Growth Capital (SME) Fund Fund Raising 2010 Abraaj Capital 700

Middle East Venture Fund Fund Raising 2010 Middle East Venture Partners 20

EFG Hermes Syria Fund Fund Raising March 03, 2010 EFG Hermes Syria 250

EVI Capital Buyout Fund Fund Raising March 10, 2010 EVI Capital Partners 400

EVI Capital Mezzanine Fund Fund Raising March 10, 2010 EVI Capital Partners 400

ARC Real Estate Income Fund Fund Raising February 21, 2010 Arcapita Bank, Al Rajhi Capital 500

Shefa MENA Health Fund Fund Raising February 16, 2010 TVM Capital MENA 100

DB Masdar Clean Tech Fund Fund Raising January 18, 2010 DB Climate Change Advisors, Masdar Venture Capital 500

MENA Fund Raising Activity—2010

A total 11 funds were announced in 2010 with a total target fund raising amounting to US$3.8 billion. The largest was the Abraaj Capital’s Abraaj-

Riyada Enterprise Development (RED) Growth Capital (SME) Fund, which was announced in 2010 with an aim to raise funds totaling US$700 mil-

lion.

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Appendix 1: MENA PE deals during 2010

Source: Thomson ONE Banker

Target Name Investment Date Target Nation Deal Value (US$ mn) Sector Buyer Name Buyer Nation Fund Name

Network Interna-tional LLC 22-Dec-10 UAE 544.53

Information Tech-nology

Abraaj Capital Lim-ited UAE.

Abraaj Capital— Abraaj Buyout Fund IV

Al Noor Medical Group 22-Jun-10 UAE 272 Medical/Health Ithmar Capital UAE

Ithmar Capital - Unspecified Fund

United Arab Inves-tors Co 13-Apr-10 Jordan 109.7 Other Products

Global Emerging Markets Switzerland

Global Emerging Markets - Unspeci-fied Fund

Saudi ORIX Leasing Company 19-Jul-10 Saudi Arabia 20 Other Products

International Fi-nance Corporation United States

International Fi-nance Corporation - Unspecified Fund

EBLA Computer Consultancy Com-pany 22-Apr-10 Kuwait 20

Computer Software and Services

Capinnova Invest-ment Bank Bahrain

Capinnova Invest-ment Bank - Un-specified Fund

Enviromena Power Systems 13-Jan-10 UAE 15

Industrial/Energy Credit Suisse Private Equity United States

Masdar Clean Tech Fund

Industrial/Energy Zouk Ventures, Ltd. United Kingdom Zouk Ventures - Unspecified Fund

Industrial/Energy Remaco Merger AG Switzerland New Energies Invest AG

Industrial/Energy Good Energies, Inc. Switzerland Good Energies Inc. - Unspecified Fund

Wadi Holdings 21-Apr-10 Egypt 8.5

Other Products Capital Trust, Ltd. United Kingdom EuroMena Fund

Other Products Proparco France Proparco - Unspeci-fied Fund

Bitaka 12-May-10 Tunisia 3.9 Consumer Related ICF Capital Spain ICF Capital I

Unified Transport and Logistics Com-pany PLC 13-Jan-10 Jordan - Other Products KGL Investment Co Kuwait

KGL Investment - Unspecified Fund

TechnoScan 15-Feb-10 Egypt - Medical/Health Gulf Capital UAE

Gulf Capital Private Joint Stock Company - Unspecified Fund

Saudi Lighting Co 29-Mar-10 Saudi Arabia - Industrial/Energy Carlyle Group, The United States Carlyle MENA Part-ners, L.P.

Pin-Pay SAL 18-Oct-10 Lebanon - Communications and Media

Middle East Ven-ture Partners Lebanon

Middle East Venture Fund L.P.

Multilane sal 18-Oct-10 Lebanon - Communications and Media



Metito Holding, Ltd. 16-Aug-10 UAE -

Other Products NBK Capital, Ltd. Kuwait NBK Capital - Un-specified Fund

Other Products International Fi-nance Corporation United States

International Fi-nance Corporation - Unspecified Fund

Mediterranean Smart Cards Com-pany 27-Jul-10 Egypt -

Computer Hard-ware Undisclosed Firm United States Management

Computer Hard-ware Actis Capital LLP United Kingdom

Actis - Unspecified Fund

ilevel Shopper Marketing Solution 18-Oct-10 UAE - Other Products



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Appendix 2: MENA PE exit deals – 2010

Source: Thomson ONE Banker, Zawya

Appendix 1 continued: MENA PE deals during 2010

Date Target Company Fund Name Country Sector Size (US$ mn)

10-Oct-10 i-Level ABAN Seed Capital Fund LP Lebanon Services -

10-Oct-10 Pin Pay ABAN Seed Capital Fund LP Lebanon Information Technology -

10-Aug-10 Rotana Hotel Management Corporation SHUAA Partners Fund I, L.P. UAE Leisure and Tourism -

2010 Advanced Petrochemical Com-pany IDB Infrastructure Fund L.P. Saudi Arabia Oil and Gas -

10-Jul-10 Banawi Industrial Group Global Opportunistic Fund I Saudi Arabia Industrial Manufacturing -

H1 2010 AES Oasis IDB Infrastructure Fund L.P. UAE Power and Utilities 96.0

10-Jan-10 Wadi Holding MENA Direct Investment Fund Egypt Agriculture 8.5

NA KGL Logistics Global Opportunistic Fund I Kuwait Transport NA

NA Masraf Al Rayan Global Opportunistic Fund I Qatar Financial Services NA

19-Dec-10 DEPA Limited Global Opportunistic Fund I United Arab Emirates Interior Designing NA (23% IRR)

15-Dec-10 Evergrande Real Estate Group Global Opportunistic Fund II Hong Kong Real Estate 61.2 (35% IRR)

Target Name Investment Date Target Nation Deal Value (US$ mn) Sector Buyer Name Buyer Nation Fund Name

Gulf Union Foods Company 3-Jan-10 Saudi Arabia - Consumer Related Jadwa Investment Saudi Arabia

Jadwa Food and Beverage Opportu-nity Fund

Financial Transac-tion House 13-Sep-10 Saudi Arabia - Other Products Undisclosed Firm United States Undisclosed Fund

Dermandar 5-Oct-10 Lebanon - Computer Hard-ware

Berytech Techno-logical Pole Lebanon Berytech Fund

Dar Alwasmi Com-pany 8-Jun-10 Bahrain NA Consumer Related

Venture Capital Bank (VCBank) UAE

Venture Capital Fund Bahrain

Consolidated Ser-vices Company March,30, 2010 Saudi Arabia NA Consumer Related

Tadhamon Capital BSC Bahrain

Tadhamon Capital BSC - Unspecified Fund

Al-Manara Insurance Plc Co. 15-Jan-10 Jordan - Other Products

Global Investment House Kuwait

Global MENA Macro Fund Co BSC

D1g.com NA Jordan - Media NA NA

Abraaj-Riyada Enter-prise Development (RED)Growth Capital (SME) Fund

Jeeran 1-Nov-10 Jordan - Information Tech-nology NA NA

Intel Capital - Un-specified Fund

E3 NA UAE - Information Tech-nology NA NA


OMS NA Egypt - Information Tech-nology NA NA


Teshkeel Media Group NA Kuwait - Media NA NA


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Disclaimer

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may therefore not be accurate or current. The information and opinions contained in this report have been compiled or arrived at from sources believed to be reliable in

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