Page 9 - MEOG Week 37
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MEOG FINANCE & INVESTMENT MEOG
ADNOC lists further 10% stake
in distribution subsidiary
UAE STATE-OWNED Abu Dhabi National Oil Com- unutilised revolving credit facilities. ADNOC
pany (ADNOC) has placed an additional 10% Distribution’s dividend policy is set to increase
equity stake in its retail fuel services arm Abu 7.5% in 2020 to AED2.57bn following a 62%
Dhabi National Oil Company for Distribution jump in its 2019 dividend to AED2.39bn.
(ADNOC Distribution) valued at $1bn to insti- Citigroup Global Markets Limited and First
tutional clients. With this placement, the com- Abu Dhabi Bank PJSC acted as joint bookrun-
pany’s free float and liquidity on the Abu Dhabi ners on the transaction. Moelis & Company
Securities Exchange will increase to 20% of its acted as an independent financial advisor to
total shares. ADNOC.
The placement was priced at AED2.95
($0.8) per share, which is 18% above the 2017
IPO price of AED2.5 per share and represents
a 5% discount on the company’s three-month
volume-weighted average price. The company
remained silent on the identity of the institu-
tional buyers, sufficing to mention that there
was significant investor demand for ADNOC
Distribution stock.
ADNOC Distribution is a leading fuel dis-
tributor and convenience store operator in the
United Arab Emirates, operating 406 retail fuel
service stations in the UAE and two retail fuel
service stations in Saudi Arabia. It maintains
a strong balance sheet, holding AED2.4bn in
cash and cash equivalents and AED2.8bn in
POLICY
Bahrain to join UAE in
normalising relations with Israel
BAHRAIN BAHRAIN’S King Hamad bin Isa Al Khalifa Bahrain’s minority Sunni rulers are undoubt-
agreed with Israeli Prime Minister Benjamin edly mindful of the sentiments of its Shia major-
Netanyahu to establish diplomatic relations ity populace who look to Iran for direction. Iran
through a US brokered accord on September 11. was quick to condemn the accord between Bah-
Following UAE’s lead, Bahrain would become rain and Israel as a betrayal of the Muslim and
the second Gulf Arab nation to normalise rela- Palestinian cause.
tions with Israel within the last month abandon- Already many Bahraini intellectuals, human
ing previously held positions. rights activists, and opposition activists, includ-
In the past, most Arab nations have made ing former members of parliament, expressed
normalisation of relations with Israel condi- their opposition to the normalisation with Israel,
tional on the implementation of the two-state stressing that the move represents the leadership
solution whereby Palestinians and Israelis live and not the people.
side-by-side in separate states. The agreement will likely be seen as a further
Unlike the declaration of establishing a dip- setback to the Palestinians who tried unsuccess-
lomatic accord with the UAE, Israel’s accord fully to have the Arab League condemn normal-
with Bahrain was framed to the public as a step isation with Israel until they have secured an
in securing “just, comprehensive, and enduring independent state.
solution to the Israeli-Palestinian conflict and to That was one of the few cards still held by Pal-
enable the Palestinian people to realise their full estinians in negotiations as peace talks remain
potential”. stalled.
Week 37 16•September•2020 www. NEWSBASE .com P9
