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We have another run of M&A news for you this morning as the dog days of summer recede into the memories of the city’s bankers, lawyers, and other advisors.
UP FIRST- UAE-based open banking platform Tarabut has acquired London-based fintech firm Vyne for an undisclosed sum, according to a press release reports. The transaction closed on 1 August.
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The gameplan: Tarabut plans to roll out real-time account-to-account (A2A) payment solutions across the Middle East, beginning with Bahrain by year-end and expanding to Saudi Arabia and the UAE as open finance regulations take effect.
What’s this all about? The company makes money by helping banks cut out payments middlemen — it aims to make it technically easier (and more affordable) for banks to give their clients the ability to pay for a transaction by direct debt from their bank account to the seller’s account, regardless of which bank holds which account.
REMEMBER- The CBUAE issued the Open Finance Regulation last June to promote soundness and efficiency of open finance services, as part of its Financial Infrastructure Transformation program,
About Vyne: Established in 2019, Vyne offers real-time A2A solutions, processing bns of USD for a diverse client base in retail, financial services, and automotive sectors.
Gulf Capital exits Middle East Glass
Gulf Capital sells stake in Middle East Glass: UAE-based private equity firm Gulf Capital sold its stake in EGX-listed bottle maker Middle East Glass (MEG) to MENA Glass Holdings Limited, the company’s majority shareholder, it said in a statement. MENA Glass Holding now owns an additional 40.2% of MEG after stakeholders agreed to offload 25.1 mn shares in a EGP 2.8 bn transaction (USD 56.5 mn), according to an EGX bulletin.
This is just off MENA Glass’ target: The company’s mandatory tender offer that came to a close last week was to acquire an additional 40.8% — 25.5 mn shares — in MEG in a USD 57.8 mn transaction.
So who owns what? MENA Glass now owns c. 93.7% of the company by our math. As for the rest of the company’s shares, IGC Holdings is understood to still hold the remaining 6.3% of the company after it rejected the offer. Gulf Capital, who had been the second largest shareholder after MENA Glass with a 36.9% share, has fully exited the company.
What’s next for Middle East Glass? EnterpriseAM Egypt spoke with CEO Tawfik Laham, who said the company is on a drive to open its fourth plant and improve efficiency across the board. He credits Gulf Capital for having helped make MEG the largest glass packaging manufacturer in the Middle East and the second-largest in Africa
ADVISORS- EFG Hermes was tapped to broker the acquisition, while Bahaa Eldin Law Office and MENA Associates acted as the buy-side legal advisor. MEG tapped Tanami Financial Advisory as its independent financial advisor to conduct the fair value study, while Arqaam Capital was the sell-side advisor.
ADNTC scraps acquisition of Aman’s life ins. portfolio
Abu Dhabi National Takaful Company (ADNTC) has called off its planned acquisition of Aman’s life ins. portfolio, claiming that Dubai Islamic Ins. Company (Aman) had failed to meet the agreement’s conditions, according to a bourse disclosure (pdf).
Background: ADNTC was poised to acquire Aman’s life ins. portfolio in a transaction valued at AED 37.5 mn, after Aman’s board greenlit the offer in June of last year.
