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Abu Dhabi, UAEMonday 20 August 2018

Amanat invests 73% of total capital with Middlesex University acquisition

Health and education sectors specialist has invested Dh1.8bn of its Dh2.5bn capital

Shamsheer Vayalil, vice chairman of Amanat says the company has deployed Dh1.1bn so far this year. Reem Mohammed / The National
Shamsheer Vayalil, vice chairman of Amanat says the company has deployed Dh1.1bn so far this year. Reem Mohammed / The National

Amanat Holdings, an investment specialist for the health and education sectors, has deployed 73 per cent of its total capital with the latest Dh369 million acquisition of the Middlesex University in Dubai.

The deal was struck with former owners including the embattled private equity firm, Abraaj Group.

The company has so far invested Dh1.8 billion of its Dh2.5bn capital, of which Dh1.1bn was deployed this year alone, Amanat said on Wednesday in a regulatory filing to the Dubai Financial Market, where its shares are traded. The acquisition of Middlesex University has a potential Dh73m earn-out clause — a contractual provision of additional payments to the seller if the business achieves certain financial goals. It is Amanat’s third investment in 2018.

The acquisition, the third for Amanat this year and its sixth portfolio asset, depicts the company’s “commitment to a more active investment strategy”, said Hamad Al Shamsi, chairman of Amanat.

Amanat last month confirmed it was in talks with owners including Abraaj, which went into provisional liquidation in June after facing accusations of mismanaging investors funds in a $1bn healthcare investment vehicle. However, Abraaj denies the allegations.

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Read more:

Amanat acquires assets from North London Collegiate School in Dubai

Amanat Holdings seeks more deals to capitalise on Abraaj collapse

UAE regulator asks public firms to declare exposure to Abraaj

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“Prior to provisional liquidators being appointed in respect of Abraaj Group, [Amanat] has entered on an arm's length basis into a share purchase agreement on June 8, 2018 with Mocha Education Holdings to acquire 100 per cent of the share capital of Middlesex Associates,” Amanat said in bourse filing at the time.

Abraaj is a limited partner in investment funds with third parties, and owned an indirect 6 per cent stake in Middlesex Associates, according to Amanat’s July 2 statement.

The company’s investment strategy is focused on significant minority or majority stakes in companies exclusively in the health care and education sectors across the Arabian Gulf region and beyond. With the latest investment, the Amanat portfolio has expanded to include three education assets in the UAE, two healthcare assets in Saudi Arabia along with a real estate investment.

“Middlesex University Dubai is a strategic investment for Amanat. Following Amanat’s investment in Abu Dhabi University Holding Company, our higher education portfolio extends across the emirates of Dubai and Abu Dhabi and covers a wide range of programmes,” Shamsheer Vayalil, Amanat vice chairman, said on Wednesday.

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