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FAB + Brookfield close Network acquisition: First Abu Dhabi Bank (FAB) and Brookfield Asset Management, along with other co-investors, finalized their acquisition of Dubai-based payments provider Network International, the bank said in a disclosure (pdf). The acquisition was completed through Bidco Holdings, a special purpose vehicle owned by Brookfield.
Background: After obtaining a 60% stake in FAB’s payments arm, Magnati in February 2022, Brookfield put in a USD 2.76 bn non-binding bid for Network, with FAB saying that it will co-invest in the acquisition. The Central Bank of the UAE greenlit the transaction in March.
What’s next? FAB and Brookfield plan to merge their payments platform, Magnati, with Network International. Once they obtain regulatory approval, both companies will contribute their stakes in Magnati to Network Project Holdings 1, which will hold the combined business.
Where’s the money coming from? Bidco secured part of the financing for the Network acquisition through a conventional credit facility from Abu Dhabi Commercial Bank (ADCB), which acted as the agent; and an Islamic financing arrangement with Dubai Islamic Bank (DIB), where DIB served as both the investment agent and the Islamic participant, according to a disclosure (pdf). The transaction also saw equity investments from Brookfield, which said it would invest up to USD 150 mn, and First Abu Dhabi Bank.
REMEMBER- Brookfield’s been making moves in the UAE for a while now. The global investment giant snagged a USD 2 bn majority stake in Dubai private school provider Gems Education. It also acquired a controlling stake in Gulf Islamic Investments’ (GII) real estate platform. Brookfield also partnered with the UAE government to launch the USD 30 bn climate fund, Alterra, during COP28.
ADVISORS- PJT Partners is the financial adviser to Network for the transaction, while Citi and JP Morgan acted as both financial advisers and corporate brokers. Morgan Stanley is the financial adviser for Bidco and Brookfield.
