Sunday 17, June 2018 by Bloomberg

Abraaj raises $52 million from Orascom Construction stake sale

 

The Dubai-based company sold its 5.4 per cent holding in Orascom Construction

Abraaj Group sold its entire stake in Egypt’s Orascom Construction Ltd. as the private equity firm seeks to restructure amid allegations of misused funds.

The Dubai-based company sold its 5.4 per cent holding in Orascom Construction at $8.30 per share, according to a statement on Nasdaq Dubai. The value of the stake is $52 million.

Abraaj has been under pressure since February when some of its investors commissioned an audit to investigate the alleged mismanagement of money in its health-care fund. Kuwait’s Public Institution for Social Security last week filed a petition for the liquidation of the holding firm.

The buyout firm, which once managed almost $14 billion for institutions and supranational agencies from the US, UK, and other countries, faces growing concerns about its viability and impending loan repayments.

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