ADQ in talks to invest $500m in Flipkart

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It said that the Indian e-commerce firm is seeking to raise at least $3 billion….reports Asian Lite News

Abu Dhabi sovereign fund ADQ, one of the region’s largest holding companies, is in talks to invest about $500 million in India’s Flipkart, media reported.

This as the Walmart Inc.-backed e-commerce firm raises funds ahead of a potential initial public offering next year, the Arab News quoted a Bloomberg report citing people familiar with the matter.

According to the report, ADQ is discussing a $35 billion to $40 billion fundraising in Flipkart that would come ahead of a planned IPO that could take place as soon as 2022.

It said that the Indian e-commerce firm is seeking to raise at least $3 billion.

Also, ADQ paid about $800 million for a 45 percent stake in Louis Dreyfus Company (LDC) last year.

The acquisitive investment group also bought the Egyptian pharmaceutical company “Amon” from the Canadian company (Bausch Health) for $740 million, it was reported.

Earlier, ADQ had submitted an offer to Abu Dhabi National Hotels Company PJSC (‘ADNH’) for a strategic combination of ADQ’s Abu Dhabi National Exhibitions Company (ADNEC) PJSC with ADNH.

The proposed transaction would create one of the largest hospitality, events, and catering powerhouses in the region that would enhance Abu Dhabi’s tourism and hospitality sectors and position them for the Emirate’s longer-term, economic transformation.

The potential strategic combination seeks to provide greater synergies through better alignment and repositioning of key assets within ADNEC’s portfolio, and is expected to be earnings accretive shortly after completion.

The combined group would have assets of approximately AED 20 billion (approximately USD 5.4 billion) as of 31 December 2020.

The activities of the resulting company would comprise a portfolio of 28 owned and operated hotels with a total of approximately 6,700 rooms, three large exhibition centres in Abu Dhabi, Al Ain and London (UK) as well as several catering companies and food and beverage outlets.

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