Kuwait-based NBK Capital has announced the completion of the sale of Turkish edible oils company Yudum Foods to Afia International, a subsidiary of Savola of Saudi Arabia, for USD70.7m.
Kuwait-based NBK Capital has announced the completion of the sale of Turkish edible oils company Yudum Foods to Afia International, a subsidiary of Savola of Saudi Arabia, for USD70.7m. The deal, the first exit for the NBK Capital Equity Partners Fund, generated a 2.8 times cash return and an internal rate of return of 318 per cent.
‘I am delighted that in such a relatively short time we have been able to make considerable progress with Yudum and substantially increase revenue and profits, making the company a very attractive proposition for a buyer,’ says Samir Assaad, managing director of NBK Capital Equity Partners Fund.
‘This is the ideal time for Yudum to enter the next phase of its growth by becoming part of a global player in the sector. This has been achieved by a perfect strategic and geographic fit through the sale to Afia International, the highest volume producer of branded edible oils in the world.’
Amjad Ahmad, chief executive of investment and merchant banking at NBK Capital, adds: ‘The sale of Yudum is the first exit for the fund and I am confident that this sets a great precedent for our future deals in the region.’
NBK Capital says it is confident that the success of the deal will lay the foundations for future deals and reinforce the its growing strength in merchant banking in the Middle East, where it operates from offices in Kuwait, Dubai and Istanbul.
