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Two Ghitha subsidiaries have kicked off plans for cross-border acquisitions to expand their portfolio and footprint.
#1- Ghitha Aeroinvest to acquire 44% stake in MNG Airlines: Food and beverage giantGhitha Holding subsidiary Ghitha Aeroinvest has entered into a share purchase agreement to acquire a 44% stake in Turkish air freight cargo company MNG Havayollari ve Tasimacilik (MNG Airlines) for USD 211.2 mn (AED 775.7 mn), according to an ADX disclosure (pdf) on Monday. Ghitha is a unit of the International Holding Company (IHC).
The acquisition comes as Ghitha looks to diversify its asset portfolio and strengthen logistical and distribution capabilities, the company said. The acquisition is slated for completion in 1H 2024.
About MNG Airlines: MNG Airlines provides cargo services like scheduled and block space charter; aircraft, crew, maintenance and ins.; and special cargo, and comprehensive technical services, according to the disclosure.
#2-Invictus eyes 60% Graderco acquisition: Ghitha’s trading arm, Invictus Investment, plans to acquire 60% of Zalar Holding’s stake in Moroccan agriculture trader Graderco, according to an ADX disclosure (pdf), which did not disclose the value of the stake. The acquisition is subject to approvals, including from the boards of both companies, the disclosure said.
The rationale: “Given Invictus’ expertise in international grains and commodity trading, and strategy to develop its business further including through joint ventures in its key markets, the potential transaction is a strong strategic fit for both companies,” the company said in the disclosure.
Background: Invictus has been planning to expand its footprint in North and East Africathrough acquisitions and joint ventures, including in Morocco, Algeria, Kenya, Tanzania, and Mozambique, the company said in a statement (pdf) earlier last year.
IN OTHER M&A NEWS-
#1- Palms Sports now owns Learn Education: IHC sports management subsidiary Palms Sports has closed the acquisition of 100% of Learn Education and its portfolio of schools, Al Rabeeh School and Al Rabeeh Academy, for an undisclosed sum, according to a press release (pdf). The acquisition comes as the company looks to expand into new verticals, having also closed an acquisition of security services firm Securiguard Middle East in July 2023.
#2- We could hear more on GulfNav’s Brooge acquisition bid within weeks: Maritime and shipping company GulfNav confirmed that its advisors are still assessing the Brooge Energy acquisition, with the aim of completing the evaluation within the coming weeks, according to an ADX filing (pdf). The shipping company also notified investors that the recent drop in its share price is not due to any divestment actions by major shareholders or undisclosed material information.
Background: Gulfnav submitted a proposal last month for the structure of the acquisition of oil storage outfit Brooge Petroleum and Gas Investment Company to the Securities and Commodities Authority. The company had submitted a proposal to fully acquire the company from Nasdaq-listed Brooge Energy back in October 2023. Discussions between Brooge Energy and Gulfnav are ongoing, with the pair working with advisors to complete an evaluation of the transaction and obtain regulatory approvals, Gulfnav said in an update attached to its statement. The acquisition was initially expected to close in 4Q 2023.
