Connect with us

Business

Fast-food giant Americana hires bank to advise on possible Saudi or UAE IPO: Sources

The Middle East and North Africa franchisee of fast-food restaurants KFC and Pizza Hut has hired investment bank Rothschild & Co to advise on a potential initial public offering (IPO), two sources told Reuters.
Americana Group, which is considering a public share sale in the United Arab Emirates or Saudi Arabia, is expected to invite banks to pitch for other top roles in the transaction in coming weeks, said the sources, declining to be named as the matter is not public.

For the latest headlines, follow our Google News channel online or via the app.

Americana is owned by Saudi Arabia’s Public Investment Fund and an investment consortium led by Dubai businessman Mohammed Alabbar, founder of Dubai-listed Emaar Properties.
Americana and Alabbar did not immediately respond to a request for comment when contacted by Reuters on Wednesday. Rothschild declined to comment.
The shareholders may also consider a dual listing for the company, the sources said.
Americana was acquired by Alabbar’s vehicle Adeptio in 2016. Saudi Arabia’s Public Investment Fund bought a 50 percent stake in Adeptio later that year.
The company was valued at $3.5 billion in 2017 when it delisted from the Kuwait stock exchange.
The Abu Dhabi Securities Exchange and Saudi Arabia’s Tadawul bourse in 2019 signed an agreement to strengthen bilateral cooperation in the dual listing of securities in the Saudi and United Arab Emirates financial markets.
Americana was founded in Kuwait in 1964 and operates 1,800 restaurants across the region, according to information on its website. It operates the franchises for KFC, Pizza Hut, Hardee’s, and Krispy Creme, among many others.
Gulf issuers have raised $3.5 billion so far this year from IPOs, according to data from Refinitiv, exceeding European flotations even as global markets remain volatile in the wake of Russia’s invasion of Ukraine.
Gulf markets are highly correlated to oil prices, where Brent crude is trading above $100 a barrel.
Saudi Arabia’s Tadawul equity index is up 17 percent so far this year, while Abu Dhabi’s main benchmark is up more than 18 percent and Dubai is up over 9 percent.

Read more: Dubai issues shares in DEWA IPO worth $6 bln: Deputy ruler

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Business

Ryanair cabin crew in Spain announce 12 new days of strikes in July

Spain-based cabin crew at Ryanair plan to strike for 12 days this month to demand better working conditions, the USO and SICTPLA unions said on Saturday, raising the prospect of travel chaos as the summer tourist season gets under way.

The announcement came on the final day of the crews’ current strike, which began on Thursday and forced Ryanair to cancel 10 flights in Spain on Saturday.

For the latest headlines, follow our Google News channel online or via the app.

Cabin crew will strike on July 12-15, July 18-21 and July 25-28 across the 10 Spanish airports where Ryanair operates, the unions said in a statement.

“The unions and crew of Ryanair … demand a change of attitude from the airline,” they said in a statement, calling for Ryanair to resume negotiations on working conditions.

The unions also urged the government “not to allow Ryanair to violate labor legislation and constitutional rights such as the right to strike.”

Airline workers across Europe have been staging walkouts as the sector adapts to a resumption of travel after pandemic lockdowns.

Spain-based cabin crew at easyJet are striking for nine days this month for higher pay. The airline cancelled five flights from Spain on Saturday.

Workers at Paris’ Charles de Gaulle airport went on strike on Friday and into Saturday, forcing the cancellation of about 10 percent of flights.

Read more:

Summer air fares will be up 7-9 pct on 2019 levels: Ryanair CEO

UK travel-chaos row escalates as IATA chief slams minister Shapps

Ryanair boss predicts tough months ahead due to rising oil prices

Continue Reading

Business

Tesla braces for delayed delivery due to China plant shutdown

Tesla Inc. is expected to announce quarterly production and delivery figures this weekend that will likely be among the worst of the year – and break its multi-quarter streak of record-setting results – due largely to an extended shutdown of its factory in Shanghai.

The electric vehicle maker may have delivered more than 261,000 vehicles globally during the three months ended in June, according to nine analysts surveyed by Bloomberg, ending a two-year stretch of consecutive quarterly gains.

For all the latest headlines follow our Google News channel online or via the app.

Tesla handed over more than 310,000 vehicles in the first three months of the year, more than any previous quarter.

“We cut our second-quarter deliveries estimate by 65,000 to 245,000 units, reflecting a prolonged Covid 19-related shutdown and logistical challenges in the Shanghai factory,” wrote Emmanuel Rosner of Deutsche Bank in a research note to clients. “Recall that during the first-quarter call, CEO Elon Musk had provided directional guidance of sequentially flat deliveries for the quarter but the situation in China worsened subsequently,” only improving in early June.

Shares of Tesla rose 1.2 percent to close trading Friday at $681.79, but the stock is down about 35 percent so far this year.

Deliveries are one of the most closely watched metrics at Tesla. They underpin the Austin, Texas-based company’s financial results and are widely seen as a broad barometer of consumer demand for EVs amid a wider shift away from the internal combustion engine.

Many large automakers will announce US sales results Friday but Tesla, which reports global totals, hasn’t specified a release date.

Dan Levy, an analyst with Credit Suisse, reduced his delivery estimate for the period to 242,000 units. “In aggregate, we believe the Shanghai shutdown accounted for about 90,000 units of lost production in the second quarter,” Levy wrote in a note to clients.

Tesla makes the Model S, X, 3 and Y vehicles at its plant in Fremont, California. It also produces Models 3 and Y at a factory near Shanghai. The company has begun delivering the first Model Ys from its new plant near Berlin and held a “Cyber Rodeo” event for 15,000 people in April to celebrate a new factory in Austin.

‘Money Furnaces’

However, both Berlin and Austin have been slow to ramp up production, with Musk warning in a late May interview that both plants are “gigantic money furnaces.”

Analysts and investors are also worried that the price hikes automakers are imposing to combat soaring raw material costs will weigh on demand. Tesla had boosted its sticker prices by as much as $6,000 a car earlier this month, according to Electrek.

A stronger-than-expected delivery number could provide a boost to Tesla’s stock, which is down more than 35 percent this year amid wider market concerns about rising energy costs, inflation and a potential recession.

Musk shares many of those concerns and is in the process of laying off 10 percent of Tesla’s salaried work force while pushing others to return to the office.

Earlier this week, Tesla laid off roughly 200 people on its Autopilot team, mostly hourly employees who worked as data annotation specialists.

Read more:

Tesla cuts 200 staff from Autopilot team as it closes California site

Watch: Electric vehicle bursts into flames, India orders investigation

Several matters in Twitter deal still unresolved, Musk says in Qatar

Continue Reading

Business

Regulator urges Germans to prepare for possible gas shortage

Fearing Russia might cut off natural gas supplies, the head of Germany’s regulatory agency for energy called on residents Saturday to save energy and to prepare for winter, when use increases.
Federal Network Agency President Klaus Mueller urged house and apartment owners to have their gas boilers and radiators checked and adjusted to maximize their efficiency.
“Maintenance can reduce gas consumption by 10 percent to 15 percent,” he told Funke Mediengruppe, a German newspaper and magazine publisher.
Mueller said residents and property owners need to use the 12 weeks before cold weather sets in to get ready. He said families should start talking now about “whether every room needs to be set at its usual temperature in the winter – or whether some rooms can be a little colder.”
For the latest headlines, follow our Google News channel online or via the app.
The appeal came after Russia reduced gas flows to Germany, Italy, Austria, the Czech Republic and Slovakia earlier this month, as European Union countries scramble to refill storage facilities with the fuel used to generate electricity, power industry and heat homes in the winter.
Russian state-owned energy company Gazprom blamed a technical problem for the reduction in natural gas flowing through Nord Stream 1, a pipeline which runs under the Baltic Sea from Russia to Germany.
The company said equipment getting refurbished in Canada was stuck there because of Western sanctions over Russia’s invasion of Ukraine.
German leaders have rejected that explanation and called the reductions a political move in reaction to the European Union’s sanctions against Russia after it invaded Ukraine.
Vice Chancellor Robert Habeck, who is also Germany’s economy and climate minister and responsible for energy, has warned a “blockade” of the pipeline is possible starting July 11, when regular maintenance work is due to start. In previous summers, the work has entailed shutting Nord Stream 1 for about 10 days, he said.
The question is whether the upcoming regular maintenance of the Nord Stream 1 gas pipeline will turn into “a longer-lasting political maintenance,” the energy regulator’s Mueller said.
If the gas flow from Russia is “to be lowered for a longer period of time, we will have to talk more seriously about savings,” he said.
According to Mueller, in the event of a gas supply stoppage, private households would be specially protected, as would hospitals or nursing homes.
“I can promise that we will do everything we can to avoid private households being without gas,” he said, adding: “We learned from the coronavirus crisis that we shouldn’t make promises if we’re not entirely sure we can keep them.”
He said his agency “does not see a scenario in which there is no more gas coming to Germany at all.”
Also on Saturday, German chemical and consumer goods company Henkel said it was considering encouraging its employees to work from home in the winter as a response to a possible supply shortage.
“We could then greatly reduce the temperature in the offices, while our employees could heat their homes to the normal extent,” Henkel CEO Carsten Knobel told daily newspaper Rheinische Post.
Earlier this month, Habeck activated the second phase of Germany’s three-stage emergency plan for natural gas supplies, warning that Europe’s biggest economy faced a “crisis” and storage targets for the winter were at risk.
Read more:

Germany risks recession as Russian gas supply crisis deepens

Europe ready for Baltics emergency switch-off from Russian grid

Oil prices fall on recession fears, on track for third weekly loss

Continue Reading

Trending