The private equity arm of Egyptian investment bank EFG-Hermes has sold its 19 per cent stake in jeweller Damas International to Qatar's Mannai Corp for US$150 million, the company said yesterday.
The deal, one of the few exits concluded in the Middle East in recent months, signalled a possible revival of the region’s private equity industry, which has been grappling with regional political turmoil and investor unease about the global economy.
The Qatari conglomerate will now hold 100 per cent ownership of the jeweller.
“This is a tremendous success, given that we bought the stake for $85m in less that two years,” said Karim Moussa, the head of private equity at EFG-Hermes.
“The market has been suffering from lack of exit routes, but we will see more private equity sales going forward, either through initial public offerings or strategic acquisitions.”
Mannai and EFG-Hermes took control of the jeweller in 2012, with Mannai holding 66 per cent of Damas and the Egyptian company 19 per cent.
EFG-Hermes, one of the largest investment banks in the Middle East, had in May 2012 teamed with Mannai, whose operations span the oil and gas, automotive, travel and logistics sectors, and de-listed the jeweller from Nasdaq Dubai after acquiring it for $445m.
“We will have a busy year ahead of us, especially with our new investment strategy. We see opportunities across Mena and we’re increasingly looking at Egypt and Africa,” Mr Moussa said. Consumer-oriented sectors, health care and infrastructure are the most attractive for private equity investors, he said.
The region, home to such private equity players as the United Arab Emirates’ Abraaj Capital, the region’s largest local firm, Bahrain’s Investcorp, and Egypt’s Citadel Capital, has been sitting on billions of dollars collected in previous years by regional funds without being deployed.
EFG Hermes’ Investment Banking division acted as financial advisor and Freshfields was the legal advisor to the private equity division on the Damas exit.
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Stamp duty timeline
December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%
April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.
July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.
March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.
April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.