{"id":93511,"date":"2024-07-04T00:00:00","date_gmt":"2024-07-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/another-adnoc-acquisition-sharjah-sets-final-yield-on-usd-1-bn-sukuk-auction\/"},"modified":"2024-07-04T00:00:00","modified_gmt":"2024-07-04T00:00:00","slug":"another-adnoc-acquisition-sharjah-sets-final-yield-on-usd-1-bn-sukuk-auction","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/07\/04\/another-adnoc-acquisition-sharjah-sets-final-yield-on-usd-1-bn-sukuk-auction\/","title":{"rendered":"Another Adnoc acquisition? + Sharjah sets final yield on USD 1 bn sukuk auction"},"content":{"rendered":"

Good morning, friends. <\/strong>The news cycle has picked up a little since we last wrote to you, with a lot of news coming from Adnoc, fresh PMI data, and a healthy dose of M&A updates.<\/span><\/p>\n

THE BIG STORY here at home<\/strong> is the non-oil private sector seeing slower growth in June, as businesses suffer from accumulated backlogs due to the April storms and heightened competition. <\/p>\n

HAPPENING TODAY- <\/p>\n

A high-level ministerial delegation arrived in Astana, Kazakhstan yesterday for the <\/strong>Shanghai Cooperation Organisation\u2019s two-day summit<\/strong>, Wam<\/a> reports. Ras Al Khaimah Ruler Saud bin Saqr Al Qasimi is leading a delegation, which also consists of Energy Minister Suhail Al Mazrouei, Economy Minister Abdullah bin Touq Al Marri, and State Minister Ahmed bin Ali Al Sayegh, among others. SCO members expected to be in attendance include China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Iran.<\/p>\n

PUBLIC SERVICE ANNOUNCEMENTS-<\/p>\n

Samsung users can now upload their drivers\u2019 license and vehicle registration onto their <\/strong>Samsung Wallet<\/strong>, after Dubai\u2019s Roads and Transport Authority (RTA) incorporated licenses and registrations onto Samsung via its app in partnership with Samsung Gulf Electronics, according to a statement<\/a>. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Lunate mulls USD 5 bn in funding to accelerate acquisitions:<\/strong> Abu Dhabi-based alternative asset manager Lunate<\/a> could tap international and regional banks for a USD 5 bn subscription credit facility to back potential acquisitions, Bloomberg<\/a> reports, citing sources it says are in the know. The funding would allow Lunate to boost its USD 105 bn assets under management without asking for additional capital from its backers.<\/p>\n

Uh, Enterprise\u2026 what\u2019s a subscription credit facility? <\/strong>Subscription credit facilities are revolving loans secured against the capital commitments of the funds\u2019 investors. They offer funds and asset managers a faster way of accessing capital, instead of the traditional capital calls, which could take over 10 business days to process.<\/p>\n

ICYMI- Lunate\u2019s expansion has been going strong: <\/strong>Lunate reportedly<\/a> reached out to key shareholders of Adnoc\u2019s gas pipeline unit last month to up their stake from the 40%<\/a> they acquired from US private equity giants BlackRock and KKR & Co in April. Lunate also acquired a minority stake<\/a> in US healthcare firm Linden Capital Partners in May and secured a 24.5% stake<\/a> in Dubai\u2019s largest office tower ICD Brookfield Place in April.<\/p>\n

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<\/a> #2- Another Adnoc acquisition in the works? <\/strong>Adnoc and Saudi Aramco are reportedly both studying bids for Australian oil and gas firm Santos, Bloomberg<\/a> reports, citing sources it says are in the know. The company has a market value of some USD 16.7 bn, and has liquefied natural gas projects in Australia, Papua New Guinea and Timor-Leste. <\/p>\n

Adnoc has been expanding its investments abroad: <\/strong>The energy giant acquired<\/a> a 10% stake in a concession Mozambique's Rovuma basin, and an 11.7% stake in the first phase of sustainable liquefied natural gas (LNG) producer NextDecade's USD 18 bn Rio Grande LNG export facility in Texas. It is also now in formal discussions<\/a> for a potential takeover of German chemical company Covestro. <\/p>\n

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#3- Genesis Digital Assets eyes US listing: <\/strong>Dubai-based crypto miner Genesis Digital Assets<\/a> (GDA) is in talks with advisers over a potential IPO in the US, Bloomberg<\/a> reports, citing people it says are familiar with the matter. The company is also considering launching a pre-IPO funding round in the coming weeks, one of the sources said.<\/p>\n

About GDA: <\/strong>GDA was founded<\/a> in 2021 by Marco Streng and Marco Krohn, co-founders of Genesis Mining, one of the first and largest cryptocurrency businesses. Genesis received over USD 1 bn investment from Sam Bankman-Fried\u2019s crypto trading firm Alameda Research. Currently, the crypto miner operates 20 data centers across North America, Europe, Central Asia, and South America, with offices in Dubai and Houston.<\/p>\n

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<\/a> #4- Gulf Data Hub mulls offloading a minority stake:<\/strong> UAE-based data center operator Gulf<\/a>Data Hub<\/a> tapped JP Morgan Chase as an adviser for a potential sale of a minority stake to investors, Bloomberg<\/a> reports, citing people it says are in the know. While the company has not reached a final decision yet on the timing or the value of the sale, it could be looking to bag as much as USD 1 bn and wrap it as early as 3Q 2024. Several global private equity firms have reportedly voiced their interest in the company.<\/p>\n

<\/a> #5- Sharjah set the final yield of its five-year AED 1 bn unsecured <\/strong>sukuk issuance<\/a><\/strong> at <\/strong>5.5%<\/strong>, Arabian Business<\/a> reports, citing an arranging document. The sukuk auction is now open for orders. <\/p>\n

ADVISORS- <\/strong>Standard Chartered will act as the sole auction coordinator and bookrunner. Our friends at Mashreq, First Abu Dhabi Bank, and HSBC, alongside Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of Sharjah, Dubai Islamic Bank, Emirates NBD Capital, Investbank, and Sharjah Islamic Bank will be the placement agents of the auction.<\/p>\n

<\/a> #6- Dubai\u2019s Sidara requested an extension until 31 July to submit another offer to UK <\/strong>engineering firm Wood Group<\/strong>, Reuters<\/a> reports. Sidara previously offered to acquire<\/a> Wood Group at GBP 2.3 per share in June, valuing the company at GBP 1.59 bn, which it said would be its final offer after Wood Group rejected its three earlier bids. The firm was given access to due diligence last month. <\/p>\n

#7- AD Ports files bid for container terminal at India\u2019s Chidambaranar Port:<\/strong> A consortium spearheaded by AD Ports Group has reportedly filed initial bids on a state-run Chidambaranar Port Authority tender to build a USD 845 mn, 4 mn TEU capacity container terminal at the port, Indian news outlet the Economic Times<\/a> reports, citing people it says have knowledge of the matter. DP World is unlikely to proceed past the initial bid stage due to security concerns regarding its operation of a container terminal at Pakistan\u2019s Karachi Port and its business ties with Cosco Shipping in, the sources told ET.<\/p>\n

#8- <\/strong>Amazon is <\/strong>working closely with UAE authorities to expedite its rollout of electric <\/strong>vehicles for deliveries<\/strong>, the National<\/a> reports. They are also addressing challenges, such as the impact of extreme heat on battery performance with partners to ensure the successful implementation of their goal to use 100k EVs for last-mile deliveries globally by 2030. \u201cIn this region, because of the extreme heat, there is not yet a scalable, fully-proven commercial electric vehicle model. Right now that is a challenge because of the temperature and the batteries,\u201d Prashant Saran, director of operations at Amazon Turkey and MENA told the National. <\/p>\n

The initiative has kicked off with pilot testing<\/strong>, though a launch timeline has not been set. \u201cWe are already working with delivery service partners who are using electric scooters to deliver in some of the dense areas,\u201d Amazon MENAT Operations Director Prashant Saran told the National. <\/p>\n

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

Politics is still dominating front pages in the foreign press<\/strong>, as more speculation on the potential outcome of French, British, and US elections swirls amid a fresh batch of polls. <\/p>\n

In the US: <\/strong>Biden is losing more ground in the presidential race with Donald Trump seeing a 6 percentage point lead in the Wall Street Journal\u2019s latest opinion poll<\/a>, speculations that Vice President Kamala Harris could be taking his place<\/a>, and calls for him to step aside<\/a> growing louder. Biden seems to be growing more aware that his candidacy is at risk, according to a New York Times<\/a> report, though the White House has rejected claims that he is willing to step aside. <\/p>\n

Across the pond: <\/strong>The Labour party is set for a landslide victory when voters go to the polls today in the UK, polls suggest, according to the Financial Times<\/a>.<\/p>\n

Over in France: <\/strong>France\u2019s far-right Resemblement National is unlikely to secure a majority in upcoming snap elections, potentially leaving the country with a political gridlock with no party able to secure enough seats to form a government, the polls show, according to the Financial Times<\/a>.<\/p>\n

NON-ELECTIONS NEWS GETTING ATTENTION-<\/strong><\/p>\n

#1- A potentially \u201ccatastrophic\u201d category 5 hurricane \u2014 Hurricane Beryl \u2014 is heading towards Jamaica<\/strong> after killing at least seven people amid widespread destruction in the southeast Caribbean. (CNBC<\/a> | AP<\/a> | FT<\/a>)<\/p>\n

#2- Israel and Hamas are approaching a potential ceasefire and hostage release agreement<\/strong>, with negotiators set to meet in the coming days, an Israeli source said. (CNN<\/a>)<\/p>\n

IN THE BUSINESS PRESS- A couple of stories are getting ink: <\/strong><\/p>\n