Abraaj Group told creditors the sale of a stake in its fund-management unit and its Pakistani utility will help resolve potential liquidity issues, according to people with knowledge of the matter.
The Dubai-based firm, roiled by allegations of misused funds, last week met banks, including Societe Generale and Mashreqbank that have the biggest exposure, the people said, asking not to be identified because the meeting wasn't public.
Abraaj told lenders it's close to finding a buyer for the asset-management stake and will soon complete the disposal of its holding in K-Electric, they said.
Abraaj raised a loan from Mashreqbank pledging the proceeds from the K-Electric sale, one of the people said. Abraaj declined to comment, while Societe Generale and Mashreqbank didn't immediately respond to requests for comment.
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The Middle East's biggest buyout firm is seeking to reassure banks and investors after allegations that it misused client money - including from the Bill & Melinda Gates Foundation and the World Bank - sent shock waves through the ranks of local deal makers. The company, founded by Arif Naqvi in 2002, is reorganising its structure - with founder Arif Naqvi ceding control of the fund- management unit - and plans to introduce new internal controls.
It has also cut about 15 per cent of its total workforce.
Abraaj is said to be in talks to sell a majority stake in its asset-management unit to Colony NorthStar. The company is selling the division to raise cash amid heightened scrutiny and to help stabilise the business, people said in March. Abraaj's cash position has been eroded as one of its largest-ever exits, the proposed sale of a 66.4 per cent stake in K-Electric, is yet to be completed. The company had agreed to sell the asset to Shanghai Electric Power Co for $1.77 billion in October 2016, but the deal has been held up due to negotiations over electricity tariffs with the government, according to people aware of the matter.
Company profile: buybackbazaar.com
Name: buybackbazaar.com
Started: January 2018
Founder(s): Pishu Ganglani and Ricky Husaini
Based: Dubai
Sector: FinTech, micro finance
Initial investment: $1 million
12 restaurants opening at the hotel this month
Ariana’s Persian Kitchen
Dinner by Heston Blumenthal
Estiatorio Milos
House of Desserts
Jaleo by Jose Andres
La Mar
Ling Ling
Little Venice Cake Company
Malibu 90265
Nobu by the Beach
Resonance by Heston Blumenthal
The Royal Tearoom
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Race card
5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; 5.30pm: Maiden (PA) Dh80,000 (T) 1,400m
6pm: Handicap (PA) Dh80,000 (T) 1,400m; 6.30pm: Handicap (PA) Dh80,000 (T) 1,200m
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m
7.30pm: Handicap (TB) Dh100,000 (PA) 1,400m
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
MATCH INFO
Real Madrid 2
Vinicius Junior (71') Mariano (90+2')
Barcelona 0
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
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From Europe to the Middle East, economic success brings wealth - and lifestyle diseases
A rise in obesity figures and the need for more public spending is a familiar trend in the developing world as western lifestyles are adopted.
One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait, Qatar and Oman – and second on the list in Bahrain.
In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.
The UK is expected to spend $421.4 billion on healthcare by 2040, up from $239.3 billion in 2014.
And development assistance for health is talking about the financial aid given to governments to support social, environmental development of developing countries.
COMPANY PROFILE
Company name: Silkhaus
Started: 2021
Founders: Aahan Bhojani and Ashmin Varma
Based: Dubai, UAE
Industry: Property technology
Funding: $7.75 million
Investors: Nuwa Capital, VentureSouq, Nordstar, Global Founders Capital, Yuj Ventures and Whiteboard Capital