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Abu Dhabi sovereign wealth fund Mubadala has upped its stake in two different companies in the Americas. The fund bought out an ins. player in the US, and upped its stake in a Brazilian food retailer.
#1-Mubadala and co-investors buy out American ins. player Truist Ins. Holdings:Mubadala, along with private equity firms Stone Point Capital and Clayton Dubilier & Ross and other co-investors, are acquiring Truist Financial Corporation's remaining 80% stake in its subsidiary, Truist Ins. Holdings (TIH), Wam reports. The allcash transaction values TIH, which is the fifth largest ins. player in the US, at an inferred enterprise value of USD 15.5 bn.
The acquisition hands the consortium full control of TIH, after it acquired a 20% stake in TIH for USD 1.95 bn earlier in 2023.
The transaction is slated for closing in 2Q 2024, pending regulatory approvals.
#2-Mubadala ups its stake in Brazil Burger King operator: Mubadala Capital has increased its stake in Brazilian food retailer Zamp to 38.5% (cc. 105.9 mn shares), Zamp said in a disclosure (pdf). The fund previously raised its stake to 20.4% in July. Zamp currently operates Burger King and Popeye’s in Brazil.
The fund has been eyeing a controlling stake in the Brazilian company for a while: Mubadala had bid for a controlling stake in the food retailer in 2022, but later withdrew it due to a lack of clarity on the impact of the takeover on Zamp’s trademark and franchise agreements.
Zamp is also in talks to operate Starbucks Brazil: The Mubadala-backed company is currently in talks with the Starbucks Corporation to potentially operate the brand in Brazil, but no formal agreement has been reached, according to a separate filing (pdf).
IN OTHER M&A NEWS-
e& is open to resuming talks for an increase in its stake in Mobily: Telecoms giant e& pulled the plug on an acquisition of leading Saudi telecoms operator Mobily due to to the increase in its share price, e& CEO Hatem Dowidar told Asharq Business, adding that the company is open to resuming talks in the future. The increase in share price made it difficult for e& to offer a premium that would remain in line with its budget for investments, Dowidar said.
Refresher: Mobily's shares surged by over 42.5% since e&’s bid — which would have seen it increase its stake from 28% to 50% — in March 2022. The share price has risen by 9.6% since the beginning of the year, closing at SAR 54.8 yesterday.
