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ADNH wants to buy out ADNH Compass from JV:Abu Dhabi National Hotels (ADNH) and Compass Group have reached an agreement that will see ADNH acquiring Compass’ entire 50% stake in the two companies’ joint venture, ADNH Compass, ADNH said in a disclosure to the ADX (pdf) on Friday. The statement did not disclose the value of the transaction.
The rationale: The acquisition “is part of ADNH’s strategic plan to boost its revenues” and income margins from key business segments,” the company said in the disclosure. The transaction is expected to help ADNH reel in an additional AED 100 mn in annual net income, according to the disclosure.
Background: ADNH — which was founded in 1971 — established a JV in 2008 with Compass Group and is now “rated as the biggest provider of food and manpower services to corporates and organizations,” according to Gulf News. The JV now offers its services, which include retail and vending, cleaning and housekeeping, pest control, and integrated facilities management, to clients ranging from schools and universities, to defense and correctional players, to the healthcare industry.
IN OTHER M&A NEWS-
Ghitha snaps up 12% stake in Al Ain for AED 61 mn: International Holding Company (IHC) retail subsidiary Ghitha Holding acquired an additional 12% stake in Al Ain Farms for Livestock Production in an AED 61 mn transaction, Ghitha said in a disclosure to the ADX (pdf) on Friday. The acquisition is being executed through Ghitha subsidiary Was Commercial Investment, which will now hold more than 60% of Al Ain Farms, according to Zawya.
Ghitha has had an appetite for acquisitions, with two of its subsidiaries kicking off plans for cross-border acquisitions last month. Ghitha Aeroinvest entered into a share purchase agreement to acquire a 44% stake in Turkish air freight cargo company MNG Havayollari ve Tasimacilik for USD 211.2 mn (AED 775.7 mn). Meanwhile, Ghitha’s trading arm, Invictus Investment, said it plans to acquire 60% of Zalar Holding’s stake in Moroccan agriculture trader Graderco.
