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Dubai-based TV satellite and streaming company OSN+ completed its acquisition of a 55.45% stake in Abu Dhabi-based Anghami, making it a majority shareholder in the Nasdaq-listed music streamer, according to a press release. OSN acquired the stake at USD 3.69 per share, 2.05x its closing price yesterday — which fell 7.7%.
The details: The new entity combines over 120 mn registered users, 2.5 mn paid subscribers, and nearly USD 100 mn in revenue, merging OSN+’s video library with Anghami’s music catalog for enhanced streaming experiences, the statement reads. Anghami co-founder and CTO, Elie Habib, will head the combined entity, while Joe Kawkabani will retain his role as OSN Group CEO.
Refresher: Anghami agreed in November 2023 to merge with Dubai-based TV satellite and streaming company OSN+. OSN+ had agreed to make a USD 50 mn investment at a valuation of USD 3.65 per share (2.03x the current share price). OSN+’s investment was expected to help prevent Anghami from being delisted from the Nasdaq, after its stock price fell below USD 1 apiece for more than 30 business days, triggering a warning notification by the exchange.
Others came to Anghami’s rescue: MBC Ventures, the VC arm of regional broadcaster MBC Group, acquired a 13.7% stake in Anghami last week, buying up 4 mn ordinary shares. Anghami’s shares rose 59% on the day of the transaction to USD 1.59 a piece.
IN OTHER M&A NEWS-
Phoenix to close USD 2.5 mn Rekt stake acquisition: The board of ADX-listed crypto firm Phoenix Group is set to meet tomorrow to approve the acquisition of a 12.5% minority stake in Dubai-based web3 gaming firm Rekt Studios, according to an ADX disclosure (pdf). The acquisition will be executed through Phoenix’s wholly-owned subsidiary, Phoenix INV Holdings.
Sukoon Ins. now owns 94.57% of Ascana, after Ascana shareholders agreed to sell an additional 1.57% of their shares to Sukoon Ins., the company said in a filing to the DFM (pdf). The transaction is worth AED 4.2 mn, according to Enterprise calculations.
REMEMBER- Sukoon Ins. already owns a 93.1% stake in Ascana, and our friends at Mashreq hold a 65.7% ownership in Sukoon Ins.’s share capital. Sukoon Ins. had previously made an offer at AED 1.65 per share to acquire up to 6.95% of the remaining issued and paid-up ordinary shares of Ascana.
