Abu Dhabi’s Mubadala halts Abraaj investment deal talks

Abu Dhabi state investor Mubadala has halted talks to buy Abraaj’s investment business, two sources said, in a blow to the private equity firm which is usually facing an investigation by investors into how the item used some of their money.

Dubai-based Abraaj, which denies any wrongdoing, is usually considering selling some or all of the unit following a row with four investors, including the Bill & Melinda Gates Foundation in addition to the planet Bank’s International Finance Corporation, over how the item used their money in a $1 billion healthcare fund.

Mubadala, which has more than $0 billion in assets, in addition to Abraaj held initial talks a month ago, although these did not progress, one of the sources told Reuters.

Abraaj said the item does not comment on market speculation, while Mubadala declined to comment on Monday.

“We remain focused on working collaboratively with our investors in addition to continuing to execute on the re-organization of our firm to pave the way for continued long-term growth in addition to value creation,” Abraaj said in an email to Reuters.

Investment banks have also approached international private equity firms to look at Abraaj’s investment arm, although some are holding off until after an investigation by forensic accounting experts Ankura Consulting, which has been commissioned by the investors, two various other sources said.

various other potential buyers include Abu Dhabi Financial Group (ADFG), sources told Reuters last month.

ADFG, which manages $6.5 billion in assets, declined to comment about its interest in Abraaj’s investment business. The Gates Foundation in addition to the IFC, the planet Bank’s private finance arm, have both declined to comment on the row.

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