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Abraaj liquidation could affect these Nigerian companies

Aureous Africa Fund LLC (Abraaj Group) is set to trigger a massive sell-off in its stake in some Nigerian companies.



African Private Equity

The recent filing for provisional liquidation by Aureous Africa Fund LLC (Abraaj Group), is set to trigger a massive sell-off in its stake in some Nigerian companies.

Recall that the Middle East’s biggest private equity firm, recently filed a petition in the Cayman Islands, asking the court to appoint PwC as provisional liquidators for the company.

The request has however been granted by the court with the appointment of executives from PwC as joint provisional liquidators of Abraaj Holdings and executives from Deloitte for the same role at the asset management arm, Abraaj Investment Management Limited.

This will pave the way for a court-supervised restructuring of the holding company and also protect Abraaj, which emerged as one of the world’s largest emerging markets investors, from creditor action against defaults.

According to Reuters, in recent times there have been complaints by several investors such as the Auctus fund, Bill & Melinda Gates Foundation and International Finance Corp (IFC), over how it used their money in a $1 billion healthcare fund. A claim Abraaj has vehemently denied.

Reacting to the court ruling which appointed liquidators for the company, Abraaj’s founder, Arif Naqvi, noted that the ruling marks the culmination of an extremely complex and challenging phase of negotiations and detailed planning.

In his words:

“Since our differences with certain investors first came to light, we have worked exhaustively and transparently to investigate the matter and address their concerns, all the while ensuring our tremendous investment teams around the world continue to support the growth of our partner companies.”

Reports from Bloomberg also said that Colony Capital Inc. has agreed to buy some of Abraaj Group’s key funds and oversee others.

Abraaj has been selling assets to raise liquidity and has also been in talks to sell its asset-management division to willing buyers.

According to reports from the National, Abraaj has sold its entire stake in Orascom Construction (an Egypt based construction firm). The company was reported to have sold its 5.4 percent holding in Orascom Construction at $8.30 per share, according to a statement on Nasdaq Dubai. The value of the stake is $52 million.

Ripple effect on Nigeria companies.

Abraaj also has some stake in some listed Nigerian companies such as C & I Leasing Plc, CWG Plc, Custodian and Allied Insurance, others include Eleme Fertilizers, Mouka Foam Limited, Bridge Clinic, Therapia Health Limited, and AOS Orwell Limited.

Recall that Abraaj had invested both in Mouka foam and Eleme Fertilizer under its Sub-Saharan Africa fund III in 2015 and 2016 respectively. It also has 517,576,289 units of shares in CWG Plc, this represents 20.25% stake in the Information Technology company, its stake also in Custodian & Allied Insurance Plc amounts to 348,027,267 units of shares.

There is a possibility that the company may also decide to sell its stake in some of these companies. If it decides to sell, then there will be an increase in the volume of traded shares of these mentioned companies.

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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Covid-19: WHO approves China’s Sinopharm vaccine

WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.



Covid-19: First world nations oppose waiving intellectual rights for vaccine development

The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.  The vaccine is reported to have 79% efficacy against covid.

This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.

“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.

The WHO added that the easy storage requirements make it highly suitable for low-resource settings.

“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.

“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.

The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.

The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.


In case you missed it

The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.

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“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead

Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead



A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.

According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.

Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.

READ: Abba Kyari’s last letter to President Buhari

She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.

The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.

READ: Chad’s President Deby dies of injuries suffered on the frontlines, as son takes over

Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.


Details later…

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