{"id":88780,"date":"2024-02-07T00:00:00","date_gmt":"2024-02-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/abu-dhabi-investment-authority-eyes-minority-stake-in-chinas-zhuhai-wanda-lots-of-ma-news-this-morning\/"},"modified":"2024-02-07T00:00:00","modified_gmt":"2024-02-07T00:00:00","slug":"abu-dhabi-investment-authority-eyes-minority-stake-in-chinas-zhuhai-wanda-lots-of-ma-news-this-morning","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/02\/07\/abu-dhabi-investment-authority-eyes-minority-stake-in-chinas-zhuhai-wanda-lots-of-ma-news-this-morning\/","title":{"rendered":"Abu Dhabi Investment Authority eyes minority stake in China\u2019s Zhuhai Wanda + Lots of M&A news this morning"},"content":{"rendered":"

Good morning, ladies and gentlemen<\/strong>, and welcome to a rather M&A-heavy issue where the big story is two Ghitha Holding subsidiaries kicking off plans for cross-border acquisitions to expand their global footprint. <\/p>\n

BUT FIRST, we have a run of stories on which you may wish to keep an eye<\/strong> over the coming days and weeks:<\/p>\n

<\/a> #1- The <\/strong>Abu Dhabi Investment Authority (ADIA)<\/a><\/strong> is in talks to snap up a minority stake in <\/strong>Chinese mall operator <\/strong>Zhuhai<\/a><\/strong>Wanda Commercial Management Group<\/a><\/strong>, Bloomberg<\/a> reports, citing people it says are familiar with the matter. ADIA could acquire shares from existing holders as the unit restructures. Private equity firm Pag and other investors hold a 60% stake, while b\u2019naire Wang Jianline holds 40%. The company operates nearly 500 malls for Dalian Wanda Group<\/a>. <\/p>\n

Zhuhai Wanda needs the lifeline: <\/strong>The company\u2019s value has fallen to less than half of what it was three years ago, adds Bloomberg. The company had initially promised investors a repayment of some CNY 30 bn plus interest if it does not IPO by the end of 2023. Zhuhai Wanda is seeking a CNY 30 bn loan from regional banks to pay off investors wishing to sell their shares and pull out, and ADIA\u2019s stake purchase reportedly hinges on the company securing the loan, according to the business news information service.<\/p>\n

Background: <\/strong>Dalian Wanda is among several property developers in China hit by a liquidity crunch in the sector amid a drying up of funds and waning public confidence. <\/p>\n

<\/a> #2- DIFC \u2764\ufe0f hedgies, installment #931: <\/strong>Dubai Financial Services Authority CEO Ian Johnston says the authority sees continued strong interest from global hedge funds looking to set up shop in DIFC. DFSA saw a 125% y-o-y uptick in registrations by hedge fund managers in 2023. The regulator is also \u201clooking if there are aspects of [regulations on crypto] that we should relax a bit\u201d as global standards for digital assets take shape. \u201cThose global standards will come over the next few years and regulators around the world will coalesce around the standards,\u201d Johnston noted.<\/p>\n

A bridge to China: <\/strong>Johnston says DFSA is working more with Chinese regulators, particularly in Hong Kong, who are willing to share their experience with regulating crypto and digital assets. Look also for DFSA to co-host with the Hong Kong Monetary Authority conferences on climate finance in Hong Kong this year and Dubai in 2025. You can catch his full interview with state news agency Wam here (watch, runtime: 5:19<\/a>).<\/p>\n

SOUND SMART- Dubai<\/strong> (here<\/a> and Abu Dhabi <\/strong>(here<\/a> | here<\/a> | here<\/a>) have been working <\/strong>overtime to attract fund managers<\/strong> in general, and hedgies in particular, to set up shop in their jurisdictions. <\/p>\n

#3- A number of high-profile UAE-based companies are among the reported bidders for a <\/strong>high-profile chain of Egyptian filling stations <\/strong>being offered for sale as part of Cairo\u2019s privatization process. Investors have until the end of today to submit their bids for a stake in Egyptian fuel retailer Wataniya, Asharq Business<\/a> quotes Egyptian Planning Minister Hala El Said as saying. Energy companies Adnoc, Enoc, Arabian Energy, and Petromin had all expressed interest in acquiring the military-owned filling station operator. <\/p>\n

It\u2019s been a long time coming:<\/strong> The Egyptian government and its sovereign fund have been working on the Wataniya sale for the <\/a>past three years<\/a>. Most recently, the Wataniya stake sale was <\/a>pushed back to early this year<\/a>. Egypt is looking to the sale of state assets to help it raise funds it needs to get out of a foreign currency crunch.<\/p>\n

#4- UAE-Congo JV eyes 4x annual gold exports: <\/strong>Primera Gold, a joint venture between Abu Dhabi's Primera Group and the Democratic Republic of Congo\u2019s government, is looking to quadruple the exports of hand-dug gold from the Congo this year, aiming for monthly exports of one to two tons, with an annual target between 12 to 24 tons, Primera Gold CEO Joseph Kazibaziba told Bloomberg<\/a>.<\/p>\n

More on the JV:<\/strong> Primera Gold DRC SA shipped five tons of gold worth USD 300 mn in 2023, its first year of operations. The JV was formed in late 2022 to address the illicit artisanal gold trade in the Congo.<\/p>\n

<\/a> #5- New guidelines on flexible work schedules for federal government employees: <\/strong>The Federal Authority for Government Human Resources rolled out a new set of guidelines for workers on a broad spectrum of contracts (full-time, part-time, temporary, and flexible work), Wam<\/a> reports. The guidelines outline how government employees can tap flexible work options including remote work within and outside the country, hybrid work, and compressed schedules. <\/p>\n

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DATA POINTS-<\/p>\n

<\/a> #1- Dubai\u2019s non-oil foreign trade hit a historic AED 2 tn a year ahead of schedule<\/strong>, Sheikh Mohammed bin Rashid Al Maktoum said on X<\/a>. The Dubai ruler and Dubai Council had set the AED 2 tn target for 2025 before the pandemic hit in 2020. <\/p>\n

#2- The <\/strong>Dubai Knowledge Fund<\/a><\/strong> says the market value of its investment portfolio rose <\/strong>nearly 50% last year <\/strong>to north of AED 1 bn, state news agency Wam<\/a> writes. The fund notes that it has made space available across Dubai to school operators that could benefit more than 18k students studying British, Indian, French and American curricula. Hit the Wam link for more if you\u2019re an operator or investor in K-12 education. <\/p>\n

#3- Memberships in the Sharjah Chamber of Commerce and Industry rose 10% y-o-y<\/strong>, reaching 72.2k, with more than 7k new members joining in 2023, Sharjah24<\/a>. <\/p>\n

#4- Almost 81% of UAE residents believe in making substantial lifestyle changes for the <\/strong>benefit of future generations<\/strong>, Zawya<\/a> reports citing the What Matters 2024 report by Belgium-based consultancy Human8. Over 80% of surveyed UAE residents call for a shift from preventing to reversing environmental damage, with 88% agreeing on brands\u2019 responsibility in environmental action. <\/p>\n

Background:<\/strong> The report is produced from global insights across 10 markets and a survey of over 13k consumers in 17 markets.<\/p>\n

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HAPPENING TODAY-<\/p>\n

#1- The <\/strong>Middle East Bunkering Convention<\/a><\/strong> concludes today <\/strong>at the Hilton Dubai Jumeirah. The event focuses on the global marine fuel sector, including supply chains, decarbonization, and new fuels.<\/p>\n

#2- The Arab Dental Exhibition Dubai is underway at the Dubai World Trade Centre until <\/strong>tomorrow.<\/strong> The conference brings together an estimated 66k attendees and 5.3k global brands, state news agency Wam<\/a> says. The gathering is one of the largest healthcare conferences in the region. <\/p>\n

#3- The Foreign Affairs Ministry\u2019s Ambassadors and Representatives of Missions Abroad <\/strong>Forum is on<\/strong> until tomorrow, the ministry said in a statement<\/a>. Over the span of 30 sessions, ministers, senior officials and government representatives will gather at the Foreign Affairs Ministry to discuss regional issues, geostrategic developments, and plans to advance the government\u2019s strategy. <\/p>\n

#4- The <\/strong>Mubadala Abu Dhabi Tennis Open<\/a><\/strong>women\u2019s<\/strong> tournament is underway <\/strong>at Zayed Sports City's International Tennis Center. The first matches of the final 16 takes place today. Finals weekend runs 9-11 February. <\/p>\n

#5- <\/strong>The Sharjah Investment Forum<\/a><\/strong> opens its doors at 8am today<\/strong> at the Al Jawaher Reception and Convention Center. The two-day event gathers 50 speakers, including ministers, government officials, and economists. <\/p>\n

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HAPPENING THIS WEEK-<\/p>\n

#1- Dubai\u2019s PMI figures are out tomorrow<\/strong>. We will be deep-diving into the finer details in our Friday edition. <\/p>\n

#2- <\/strong>The UAE Tour Women<\/a><\/strong> is happening tomorrow, and running until next Sunday starting <\/strong>in Dubai and ending in <\/strong>Abu Dhabi. <\/strong>The event will feature three sprint stages and a mountain climb up Jebel Hafeet, spanning 468 km from Dubai to Abu Dhabi.<\/p>\n

#3- The Sharjah Consultative Council will discuss restructuring the Police Science <\/strong>Academy in Sharjah <\/strong>this Thursday, Sharjah24<\/a> reports. The restructuring would be enforced under a proposed bill amending a 2014 law.<\/p>\n

#4- <\/strong>International Crop-Science Conference & Exhibition 2024 (ICSCE)<\/a><\/strong> also starts on Thursday, at the JW Marriott, Marquis Dubai. The ICSCE is one of the largest agriculture input events in the world. <\/p>\n

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THE BIG STORY ABROAD-<\/p>\n

It\u2019s a particularly slow Wednesday for news globally<\/strong>, whether you\u2019re looking at the business pages or the front pages. <\/p>\n

On the front pages: <\/strong>Qatar says Hamas is \u201cpositive\u201d<\/a> on a proposal to release Israeli hostages in return for a long pause in the war and the release of Palestinians in Israeli jails. Negotiators from Egypt, the US, and Qatar are working overtime<\/a> to get the agreement over the line. <\/p>\n

In the business pages: <\/strong>US senators claim that top execs from McKinsey, BCG, and Teneo are not fully cooperating with their investigation into the potential merger of the PGA Tour with the Public Investment Fund\u2019s LIV Golf, Bloomberg<\/a> reports. \u201cMcKinsey and BCG told US lawmakers on Tuesday that their employees in Saudi Arabia could face jail if the firms handed over details of their work for the country\u2019s sovereign wealth fund without approval from the kingdom,\u201d the Financial Times<\/a> adds.<\/p>\n

WORTH READING on a slow news morning:<\/strong><\/p>\n