ADNH Catering to Increase Stake in Compass Arabia to 50%
Deal News | Nov 20, 2024 | Zawya
Abu Dhabi National Hotels subsidiary ADNH Catering is set to expand its foothold in the Saudi Arabian market by increasing its stake in Compass Arabia from 30% to 50%. This move aligns with the company's strategy to broaden its influence and operational reach across the region. The announcement arrives only a month after ADNH's debut on the Abu Dhabi Securities Exchange with a notable market capitalisation of $588 million. The company's recent initial public offering (IPO) generated AED 864 million ($235 million) in funds. Compass Arabia specializes in a suite of services including catering, food distribution, logistics, and more, marking it as a significant player within the region’s food and support services sector.
Sectors
- Food Services
- Financial Services
- Logistics
Geography
- United Arab Emirates – ADNH Catering is a subsidiary of Abu Dhabi National Hotels, which is based in the UAE.
- Saudi Arabia – Compass Arabia operates in Saudi Arabia, and ADNH Catering is increasing its stake to expand its presence in this market.
Industry
- Food Services – The transaction involves ADNH Catering increasing its stake in Compass Arabia, which operates in the food services industry.
- Financial Services – The deal occurred shortly after an IPO and involves trading on the Abu Dhabi Securities Exchange.
- Logistics – Compass Arabia offers logistics services as part of its business operations.
Financials
- $235 million – Funds raised by ADNH Catering from its initial public offering.
- AED 864 million – Equivalent in AED of the funds raised from the IPO.
- $588 million – Market capitalisation of ADNH Catering at the time of its listing on the ADX.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Abu Dhabi National Hotels | Parent Company | Company | The major hotel operator in the UAE, parent company of ADNH Catering. |
| ADNH Catering | Bidding Company | Company | A subsidiary of Abu Dhabi National Hotels aiming to increase its equity in Compass Arabia. |
| Compass Arabia | Target Company | Company | A food services company offering catering, food distribution, logistics, housekeeping, and laundry services. |