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Abraaj gets 70 per cent of Nigerian firm by converting loan

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Abraaj was the largest buyout fund in the MENA until it collapsed last year following turmoil triggered by a row with investors, including the Gates Foundation.

Thursday 10, January 2019

(Bloomberg) --Abraaj Group, the private-equity firm that collapsed after defaulting on debt, will get a 70 per cent stake in C&I Leasing by converting a $10 million loan into equity in the Nigerian company.

“Abraaj knows that pulling out $10 million will be detrimental to the growth of the business, so rather than cash out, they decided to convert,” C&I Chief Executive Officer Andrew Otike-Odibi said by phone from Lagos. Once done, C&I plans a rights issue or an initial public offering that may dilute Abraaj’s stake to about 30 per cent, he said.

Abraaj is being restructured by liquidators in a bid to settle more than $1 billion of its debts through asset sales. The firm’s Lagos office did not respond to an email seeking comment.

TAGS : Abraaj, C&I

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