Dubai's Abraaj receives $1 bid for fund unit
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Dubai’s Abraaj receives $1 bid for fund unit

Dubai’s Abraaj receives $1 bid for fund unit

The business managed $14bn at its peak

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Dubai’s Abraaj Group has received a bid as low as $1 for its fund unit from private equity firm Actis, according to reports.

Bloomberg cited sources as confirming the offer for the business, which managed around $14bn at its peak.

Chicago’s Vistria Group, Rohatyn Group, Kuwait’s Agility Public Warehousing and Abu Dhabi Financial Group have also made bids, the sources said.

Meanwhile, Colony Capital, which had an earlier offer for the entire fund business rejected, is now bidding for its Latin American operations, Helio Capital Management is targeting the Africa business and National Bank of Kuwait Capital has made an offer for the Middle East and North Africa unit.

Read: Bidders emerge for Abraaj’s investment unit after Colony Capital offer rejected

Other regional offers have come from London-based Centricus for the Turkish and South East Asian operations, Bloomberg reported, with Brookfield Asset Management also said to be interested in parts of the overall business.

The sources said no final decision had been made and other offers were also received.

Reuters reported Actis’ interest in Abraaj at the end of August.

Read: Actis emerges as bidder for Abraaj’s emerging market funds

Abraaj filed for provisional liquidation in the Cayman Islands in June after months of turmoil linked to a row with investors over the use of their money in a $1bn healthcare fund.

Abraaj’s liquidators, Deloitte and PwC, plan to present offers to limited partners and choose buyers by Friday, the sources told Bloomberg.

It has been reported that Abraaj was found to have borrowed money from its own funds to meet operating expenses ahead of its collapse.

Bloomberg reported last month that the firm owed investors in one of its funds at least $300m.

Separately, Abraaj founder and former CEO Arif Naqvi settled a UAe case relating to a $218m bounced cheque at the end of August having initially been sentenced to three years in prison.

Read: Abraaj founder reaches settlement following prison sentence by UAE court


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