{"id":566218,"date":"2021-06-03T13:26:24","date_gmt":"2021-06-03T13:26:24","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/03\/juhayna-wont-confirm-its-in-talks-to-sell-a-stake-to-adq-but-dont-count-this-out-yet\/"},"modified":"2021-06-03T13:26:24","modified_gmt":"2021-06-03T13:26:24","slug":"juhayna-wont-confirm-its-in-talks-to-sell-a-stake-to-adq-but-dont-count-this-out-yet","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/03\/juhayna-wont-confirm-its-in-talks-to-sell-a-stake-to-adq-but-dont-count-this-out-yet\/","title":{"rendered":"Juhayna won\u2019t confirm it\u2019s in talks to sell a stake to ADQ, but don\u2019t count this out yet"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>Is Juhayna in talks to sell a stake to Abu Dhabi\u2019s <\/strong><strong>sovereign wealth fund? <\/strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/e59166cb-e94c-4bfe-835f-5e3705485898\">Bloomberg<\/a> broke the news last night, quoting unnamed sources as saying ADQ Holding was looking to take a stake in Egypt\u2019s leading maker of dairy products. The report said the talks were at a preliminary stage, with no certainty the fund would go ahead with the transaction.<\/p>\n<p><strong>JUFO said this morning (<\/strong><strong><a href=\"https:\/\/ent.news\/2021\/6\/Juhayna-EGX.pdf\">pdf<\/a><\/strong><strong>) that it has yet to receive an official offer from ADQ<\/strong>. The EGX <a href=\"https:\/\/www.egx.com.eg\/ar\/BulletinNews.aspx?BCODE=263643&All=\">halted trading<\/a> on JUFO\u2019s shares for 10 minutes after the statement was logged. <strong>JUFO shares closed up nearly 5%<\/strong><sup><\/sup><strong> today <\/strong>at EGP 4.44 apiece.<\/p>\n<p><strong>It\u2019s easy to see why ADQ might be interested. <\/strong>Juhayna is sharply undervalued, with its shares trading at near an all-time low after <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/e59166cb-e94c-4bfe-835f-5e3705485898\">plunging more than 40%<\/a> in the period after the company\u2019s founder and CEO were each detained on charges unrelated to the company. Shares snapped a three-day losing streak yesterday and were up the maximum 5% in early trading today, but it\u2019s still trading at a PE of less than 7 based on its forecast 2021 earnings. Its fundamentals are strong, with a great product portfolio, a track record of product innovation and plenty of room to run in a fast-growing consumer market that still skews toward unpackaged milk and milk products.<\/p>\n<p><strong>JUFO reported stable revenues in 9M2020 <\/strong>at EGP 5.7 bn, with notable improvements in gross profit margin and net income at the same time as it cut its net debt by more than 40%, according to its <a href=\"http:\/\/www.juhayna.com\/app\/uploads\/2020\/10\/1603355139_596_471033_jufoer3q20eng.pdf\">last earnings release (pdf)<\/a>.<\/p>\n<p><strong>There\u2019s some noise around the stock<\/strong>, including the detention of the Thabets and the company\u2019s shares being <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b008ce56-a392-4bee-9678-8e1988912054\">bumped to the EGX\u2019s \u201cD-list\u201d<\/a> after it failed to report its 2020 results on time. The latter is hardly a surprise given the company (which had never previously been sanctioned by the EGX) is wrangling two auditors who are getting their heads around the detention of Seif and Safwan Thabet.<\/p>\n<p><strong>But ADQ is the type of investor that can see beyond that. <\/strong>It\u2019s a long-term in also has a proven interest in both the consumer foods segment and in Egypt. It\u2019s been on an acquisition spree in Omm El Donia as of late, acquiring 100% of <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/d117b907-a3f9-4a75-80dc-b07748621d7a\">Amoun Pharma<\/a> in April in a USD 740 mn transaction and investing USD 1 bn last year in retailer <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/958aae17-9582-4af8-a183-ae322ccf304b\">LuLu\u2019s Egypt expansion<\/a>. It\u2019s also looking at investments in Egyptian meat and poultry business <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ad79dcc4-e48b-492b-a3fc-e706b8fcb8cc\">Atyab<\/a> and gas stations operator <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7d32e060-6886-4e50-912d-289c42928f40\">Wataniya<\/a>. Still, having amassed an estimated USD 110 bn in assets since its founding in 2018, the fund wants to make significant new investments over the next five years, CEO Mohamed Hassan Alsuwaidi told Bloomberg <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5c19d4a2-09dd-4630-9337-bc0e08fbd385\">last month<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is Juhayna in talks to sell a stake to Abu Dhabi\u2019s sovereign wealth fund? Bloomberg broke the news last night, quoting unnamed sources as saying ADQ Holding was looking to take a stake in Egypt\u2019s leading maker of dairy products. The report said the talks were at a preliminary stage, with no certainty the fund [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10045],"tags":[299,68,633,1027,7128],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-566218","post","type-post","status-publish","format-standard","hentry","category-speed-round-ma-watch","tag-adq","tag-egx","tag-enterprisepm","tag-juhayna","tag-ma-watch","wpautop","entry"],"acf":{"mongo_id":"2f79108d-be4e-4e2b-8353-7cd2e0ab774c","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[566212],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Juhayna won\u2019t confirm it\u2019s in talks to sell a stake to ADQ, but don\u2019t count this out yet - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/06\/03\/juhayna-wont-confirm-its-in-talks-to-sell-a-stake-to-adq-but-dont-count-this-out-yet\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Juhayna won\u2019t confirm it\u2019s in talks to sell a stake to ADQ, but don\u2019t count this out yet\" \/>\n<meta property=\"og:description\" content=\"Is Juhayna in talks to sell a stake to Abu Dhabi\u2019s sovereign wealth fund? 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Abu Dhabi\u2019s sovereign wealth fund ADQ Holding is mulling the acquisition of an undisclosed stake in Egyptian dairy giant Juhayna, Bloomberg reports, citing unnamed sources with direct knowledge of the matter. The discussions are still at a preliminary stage and there\u2019s no\u2026","rel":"","context":"In &quot;M&amp;A WATCH&quot;","block_context":{"text":"M&amp;A WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/ma-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/45.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":582965,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/03\/14\/adq-reportedly-in-early-stage-talks-for-a-stake-in-delta-sugar\/","url_meta":{"origin":566218,"position":1},"title":"ADQ reportedly in early stage talks for a stake in Delta Sugar","author":"enterpriseam admin","date":"14 March 2023","format":false,"excerpt":"Delta says it hasn\u2019t received any offers","rel":"","context":"In &quot;Privatization&quot;","block_context":{"text":"Privatization","link":"https:\/\/enterpriseam.com\/egypt\/category\/business\/privatization-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/3\/Delta-Sugar-Company-1.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":606330,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/14\/adq-may-need-to-make-an-mto-for-sidpec-following-its-merger-with-ethydco\/","url_meta":{"origin":566218,"position":2},"title":"ADQ may need to make an MTO for Sidpec following its merger with Ethydco","author":"enterpriseam admin","date":"14 September 2023","format":false,"excerpt":"ADQ is buying a 27% stake in Ethydco, which could translate into a controlling stake in the company formed when Ethydco merges with Sidpec","rel":"","context":"In &quot;Privatization&quot;","block_context":{"text":"Privatization","link":"https:\/\/enterpriseam.com\/egypt\/category\/business\/privatization-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/9\/924.JPG?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":563762,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/15\/shareholders-agree-to-sell-99-of-amoun-pharma-to-adq\/","url_meta":{"origin":566218,"position":3},"title":"Shareholders agree to sell 99% of Amoun Pharma to ADQ","author":"enterpriseam admin","date":"15 July 2021","format":false,"excerpt":"ADQ looks like it\u2019s getting almost all of Amoun: Amoun Pharma shareholders have agreed to sell a 99.9% stake in the company to Abu Dhabi sovereign fund ADQ in a mandatory tender offer, the EGX said in a statement yesterday. The 10-day subscription period for the MTO, which expired yesterday,\u2026","rel":"","context":"In &quot;M&amp;A WATCH&quot;","block_context":{"text":"M&amp;A WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/ma-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/208.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":545715,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/10\/adq-could-buy-up-national-investment-banks-entire-stake-in-abu-qir\/","url_meta":{"origin":566218,"position":4},"title":"ADQ could buy up National Investment Bank\u2019s entire stake in Abu Qir","author":"enterpriseam admin","date":"10 April 2022","format":false,"excerpt":"Abu Dhabi wealth fund ADQ is on course to acquire the National Investment Bank\u2019s (NIB) entire 21.5% stake in Abu Qir Fertilizers as part of its USD 2 bn investment in Egypt, sources told Bloomberg Asharq, without disclosing the value of the sale. 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