Dewey & LeBoeuf’s Dubai and London offices have advised Emirates NBD, the largest bank by assets in the Middle East, in one of the biggest M&A transactions in the Gulf region this year.
Emirates NBD has agreed to sell a 49% stake of its credit card-processing subsidiary, Network International LLC, to Abraaj Capital, a Dubai-based private-equity firm that manages $6.6 billion, for a total consideration of approximately AED 2 billion dirhams (US$550 million).
Abraaj will purchase the stake in Network International LLC through Abraaj Financial Technologies Holding Ltd., an indirect subsidiary of Abraaj Buyout Fund IV, L.P., a US $2billion fund based in the Cayman Islands. Emirates NBD will also help fund the deal through a series of complex vendor financings, which includes an earn out contingent upon attainment of profitability targets.
The transaction, which is expected to be completed in the first quarter of 2011, is subject to regulatory approvals. The sale was carried through an auction process which started in April 2010 and attracted interest from more than 20 international bidders.
Network International, which currently serves over 50 banks and financial institutions and more than 11,000 merchants, is the only payment processor globally to have a Principal Membership with both Visa and MasterCard. The company offers its customers products and services in both the issuing and acquiring segment of the payments industry in the Middle East and Africa. The company also manages one of the region’s most extensive ATM networks, currently exceeding 700 ATMs.
The D&L team was led by Chris P. Sioufi (partner) and Rodolphe R. Pellerin (senior associate). The team also included Rob Vickers (senior associate), Christian Harran (senior associate) and Charbel Atallah (associate). Tom Renwick (associate, Dubai) with the support of the London office Banking Group including Paul Denham (senior associate, London) assisted Emirates NBD on the related financing.
Emirates NBD was also advised by the London and Dubai units of Morgan Stanley, while Abraaj Capital was represented by FT Advisors (London).
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