MENA Infrastructure Fund, the infrastructure equity fund sponsored by HSBC, Waha Capital and Dubai International Capital, has acquired 32.8% of United Power Company UPC) for $26.5 million.

UPC is listed on the Muscat Securities Market, with 40% of its equity capital being publicly traded. MENA Infrastructure Fund has acquired 32.8% of the founders' shareholding in the company from GDF Suez, the French energy giant

MENA Infrastructure Fund is a $500m infrastructure equity fund established in 2006. At its first close in September 2007, it raised commitments aggregating $300m. (Our directory of investors in the Middle East have more details on other Private Equity and investment firms in the Middle East like MENA Infrastructure Fund)

So you have closed the deal, or thinking about closing a deal with a Venture Capital or Private Equity investor for your firm. What are the implications of a PE/VC investment on a company? Here is a good presentation from the recent DIFC Private Equity Forum by PricewaterhouseCoopers. Enjoy!

In a deal between two multi-billion dollar companies, a part of the Middle East business of one large pharmaceutical giant changed hand to another giant pharma.

GlaxoSmithKline plc (GSK), the world's third largest pharmaceutical company, today announced that it has acquired the branded generics business of Bristol Myers Squibb (BMS) in Lebanon, Jordan, Syria, Libya and Yemen for a cash consideration of $23.2m.

The reason: "extending its product portfolio in the Middle East and North Africa and accelerating growth in emerging markets". Developed markets are quiet and everyone wants a part of growth in emerging markets like the Middle East. (BMS will continue to supply the products acquired today until 2011 when it is anticipated that manufacture will transfer to GSK’s plant.)

TechCrunch, the leading tech blog, starts its headline with "Say What?" and continues with "Bet you didn’t see this one coming". Sakhr Software, the Arabic language tech specialists just acquired the Silicon Valley based company Dial Directions for an undisclosed amount.

Sakhr Software was established in Kuwait in 1982 as an affiliate of Alalamiah Group. They have presence in US through Sakhr Software USA which itself dates back to 1992 and a company called Digitek. Long story, but the story of a successful Middle Eastern company now shopping in the US.

(Check out this cool video as an example of what these guys can do)

Wouldn't a company that has been behind themed construction projects like Madinat Jumeirah, Ski Dubai and Atlantis Dubai be a nice target for investment? Well, it just received some.

Construction Week Online just reported that Abu Dhabi based ANC Holdings and its partner, Flag Holdings, have together bought up a controlling 51% stake in themed contractor Amusement Whitewater AWW. (The amount is not yet disclosed. They are reporting that they have "put aside up to US $272 million for the development of themed projects over the next 12 months". Big money!) They used to make good money as well: Their Atlantis contract was worth $25 million.

(You can download our directory of investment firms in the Middle East for a list of investment firms in Abu Dhabi)

Delta Partners, the Dubai-based advisory and investment firm, has just invested $7 million in the technology group Vox Spectrum.

The investment has been done through their $80 million fund, (Delta Partners MENA Telecom Fund), a fund focused on investments in telecommunications, media and technology in emerging markets.

The investment in Vox Spectrum is the fifth completed by Delta Partners MENA Telecom Fund. In December last year, Delta Partners has co-invested with the Abu Dhabi Investment Company in the acquisition of Orasinvest. They also co-invested along with Virgin Group in Trivon AG, a provider of fixed wireless internet access in Russia. (More details on the deal here).

(You can download our directory of private equity firms in the Middle East to find out more about other Private Equity firms in the Middle East like Delta Partners)

One of the insightful presentations from the DIFC Private Equity Forum was the presentation by Vikas Papriwal of KPMG (Partner – Private Equity and Sovereign Wealth). Although just in three slides, it has great insightful notes. Enjoy!

(For a full list of Private Equity firms from Dubai, check out our directory)

Here is a selection of our draft notes from the DIFC Private Equity Seminar:

- On the PE consolidation in Mideast: "Teams" will be consolidated, not firms. People will leave from weak firms and go to strong.

- On the value creation focus of PE firms in Mideast: collapse of financial engineering and multiple arbitrage: so more focus on operational side and active ownership.

- On the trend for syndicated deals: Not happening in Mideast unlike Europe (1) Issues in both Finding and Funding deals (2) Control requirements: if there is no control, the other PE firm wouldn't come on board

- On the benefit of private investor: Main benefit of private investor (in addition to capital): Finance, Expansion, Institutionalization, ... basically stuff that is not the focus of entrepreneur.

- On the state of Mideast Funds: Only 1-2 Middle East funds have gone through the typical full fund life cycle.

- On the deal structure and players: A Private Equity GP: we look for industry "co-investors": For example a PE firm specialized in Healthcare when we want to invest in a healthcare firm.

- On the trend for preparation for IPO: at the moment not even "preparation" for IPO in the Mideast. Everyone is focusing on cost-cutting and IPO preparation looks like a cost

- On the need for lobbying in Mideast PE scene: not quite required similar to Western PE. Because of non-involvement in industries like utilities, defence, etc.

You know DIFC - "The Dubai International Financial Centre". As part of their Knowledge Series, a regular series of seminars, they are going to host a seminar titled "Private Equity in the MENA Region".

It will be held on Wednesday June 24, 2009. So tomorrow is the final day to register for this free event. (Don't forget to mention DubaiBeat.com in your registration form).

If you need to see the agenda before registration, feel free to contact us and we will send you the agenda by email.

[Update: our coverage here]

Dubai Aluminium Company (DUBAL) has entered into an agreement with Vale, the Brazilian mining giant, to develop a green-field alumina refinery in Brazil’s northern State of Pará.

DUBAL will hold a 19% equity stake in the joint venture company. Vale, the world’s second-largest metals and mining company, will hold 61% and Hydro Aluminium 20%.

(For a full list of investment companies from Dubai, check out our directory)

IPIC, the Abu Dhabi state enterprise responsible for investments in the hydrocarbons and related sectors, and MAN Ferrostaal, a global provider of industrial services in plant construction and engineering, have finalized their deal following approval by the international antitrust authorities of the deal.

IPIC has acquired 70% of the shares for $490 million; MAN remains a shareholder maintaining 30%. The price for 100% of the shares will amount to approximately $921 million. (MAN Ferrostaal is employing around 4,400 people in 60 different countries. In 2008, its annual turnover amounted to $2.1 billion)

(For a full list of investment companies from Abu Dhabi, check out our directory)

Al Arafa for Investment and Consultancies, an Egyptian holding company, acquired a 35% stake in Italian clothing firm, Forall Confezioni, for $35 million.

Arafa Group has also obtained a five-year call option for the remaining 65% of Forall Group; this option will allow Arafa to fully consolidate Forall’s financial results immediately.

(Forall Group was established in Vicenza, Italy, in 1970 and reported total revenues of $184 million with an EBITDA of $14 million for the year ending December 2007. The group is the owner of brands including “PAL ZILERI” and “LAB”, among others. A global menswear brand, PAL ZILERI is distributed in 76 countries from Europe, the United States and Japan to China, India, and the GCC.)

Three years after initiating their activities in Dubai and the Middle East, the Carlyle Group today announced it has completed raising its first Middle East and North Africa (MENA) fund, Carlyle MENA Partners, with equity commitments of $500 million.

From offices in Cairo, Dubai and Istanbul, Carlyle’s team of 12 professionals targets investments in Turkey, North Africa (Algeria, Egypt, Libya, Morocco and Tunisia), the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates), the Levant (Lebanon and Jordan) and Pakistan. They will directly compete with other Private Equity firms in Dubai and the Middle East.

You can submit your Business Proposal to their Middle East team using this form (mentioning DubaiBeat)

Here is a brief history of how they launched their activities in the Middle East:

Continue ... »

When you have hundreds of billions of dollars in assets, the way you are investing it is everybody’s guess. For ADIA, the Abu Dhabi sovereign wealth fund, we have a clue:

According to an article in Emirates Business, this is how ADIA’s Abu Dhabi investors are investing their money: “Recent reports show that 50-60 per cent are in equities, with 14 per cent of this in emerging markets' equity. About 20-25 per cent are in fixed income; five-eight per cent in real estate, five-10 per cent in private equity and five-10 per cent in alternatives.”

The whole article titled “Wealth funds in the UAE” worth a look at to review how Dubai Investors and Abu Dhabi Investors are investing their money.