Meysan Partners advises Abyat Megastore
Meysan Partners announced its representation of the selling shareholders in the sale of a 35 per cent strategic interest in Abyat Megastore to Saudi Arabian-regional conglomerate, Al Muhaidib Group.
Abyat Megastore operates as a home improvement retailer, selling building materials and home improvement products. It is one of the largest retailers in the Middle East. The deal is expected to further Abyat’s expansion into Saudi Arabia and the wider Gulf region, with Al Muhaidib Group also benefiting from an increased presence in the building materials sector.
The transaction, which signed on April 27, 2015, is the second acquisition transaction successfully executed by Meysan since its launch in January 2015. In February, Meysan represented the sellers in the landmark $170 million sale of online food takeaway market leader, Talabat.com, to the German e-commerce group, Rocket Internet AG.
Bader El-Jeaan, the senior partner at Meysan who led the legal team on the transaction, said, "We are exceptionally proud to have been involved in this transaction representing the shareholders of Abyat. Although depressed oil prices and the regional political turmoil have resulted in a slower transaction market during the past few months across the entire region, we believe that both Talabat.com, and, now Abyat, reflect international investor confidence in Kuwait’s long-term compelling economic growth story. The fact that, in both transactions, there was a foreign buyer is a testament to the skills and dynamism of Kuwait’s business community and the strength of its companies, such as Abyat, which is not only a market leader, but a pioneer in its sector.”
El-Jeaan says that more M&A deals in Kuwait will unsurprisingly depend on the international expansion plans of Kuwait companies. “Abyat and a small number of the more dominant Kuwaiti players are well positioned to do more deals sooner than others,” he said. “International investors want to invest not just into a strong cash flow-generative business, but into the security of reputation, a leading market position and a clear growth strategy. Abyat fits that profile. Abyat is a valuable client, and we hope to partner with them as often as possible.”
Meysan's team on the transaction was led by Bader El-Jeaan, and included associates Tarek Yehya, Shahad Al Robaian and Mosaed Al Ajeel.
