DCG sells and buys back Egyptian Fertilizers stake

Abraaj Capital’s partner on the Egyptian Fertilizers Company deal earlier this month, the Dubai Capital Group registered an 88 percent IRR and made three times its original investment in the stake it sold and later bought back.

The buyout arm of Dubai-based asset manager Dubai Capital Group has sold its 9.65 percent stake in Egyptian Fertilizers Company and rebought 15 percent in the Abraaj Capital-led consortium’s $1.41 billion ($1.05 billion) deal.

Dubai Capital Group made 300 million dirhams ($81.7 million, €60.9 million) profit achieving an 88 percent IRR on the deal and made three times its original investment.

Saudi-based Rashed Al Rashed & Sons Group and other co-investors are also members of the Abraaj consortium.

The company declined to comment on its sale and buy-back.

The company said in a statement its private equity portfolio has had an average IRR of 99 percent and 130 percent return on its original investments.

The Abraaj Capital-led consortium’s acquisition of the Egyptian Fertilizers Company is the second largest deal ever in the Middle East and North Africa region after Colony Capital’s buyout of Libyan oil company Tamoil for €4 billion ($5.4 billion). Both companies were bought in the same week at the beginning of the month.