RedBird IMI completes acquisition of U.K.’s All3Media
RedBird IMI completed its $1.45 billion acquisition of All3Media, the largest independent production company in the U.K., after receiving approval from British, U.S. and German regulators.
Under the agreement, Jeff Zucker, CEO of Abu Dhabi-backed RedBird IMI, becomes All3Media’s chairman, while All3Media CEO Jane Turton will continue to lead the company.
The London-based studio, which is jointly owned by Warner Bros. Discovery and Liberty Global, has 50 production labels, including Studio Lambert, Raw, Two Brothers Pictures, Silverback Films, New Pictures and Neal Street Productions.
Redbird IMI gave up on its bid to take over London’s Telegraph newspaper last month after encountering vigorous government opposition.
The Daily Circuit: UAE revels with Man City + Alef heads for IPO
👋 Hello from the Middle East!
Today in the Daily Circuit, we’re looking at Alef Education’s upcoming IPO, Redbird IMI’s $1.45 billion U.K. studio acquisition, ADQ’s new Jordan infrastructure fund and plaudits for Saudi Arabia’s “Norah” at the Cannes Film Festival. But first, on the football pitch with Mubadala’s Khaldoon Al Mubarak.
The Premier League Trophy is coming home… to Abu Dhabi. Manchester City, owned by UAE Vice President Sheikh Mansour bin Zayed, won a record fourth straight Premier League title on Sunday, beating West Ham 3-1 in the final game of the season. City, as the club is known, is the first to clinch the champion title of English soccer’s top division four years in a row.
The team to beat in the U.K. is in many ways the UAE capital’s soccer team as well — from a business perspective at least. City is part of a multi-club ownership structure under City Football Group (CFG), owned by Sheikh Mansour and chaired by Mubadala CEO Khaldoon Al Mubarak. Other board members include attorney Martin Edelman, who has served on the board of Abu Dhabi’s listed developer Aldar as well as an advisor to Mubadala; UAE communications fixer Simon Pearce; oil and gas executive John MacBeath; Alberto Galassi, CEO of Italian yacht builder Ferretti Group; and Abdulla Khouri, whose entertainment and events group, Ethara, puts on the Abu Dhabi Grand Prix each year.
Since coming under Sheikh Mansour’s ownership in 2008, when he bought the club for $254 million, City has become the fifth most valuable soccer team in the world, worth just shy of $5 billion — and notably had the highest revenue of any club last year, according to Forbes. In 2019, American private equity firm Silver Lake invested $500 million for a 10% stake in CFG, and three years later made an undisclosed follow-on investment to increase its holding to around 18%. CFG holds stakes in 13 football clubs over five continents including New York City FC and Melbourne FC. Sheikh Mansour is the chairman of Mubadala, Abu Dhabi’s second largest sovereign wealth fund, whose holdings swelled to $302 billion in assets under management last year.
Alef Education Holding is planning an IPO on the Abu Dhabi Securities Exchange as it seeks to expand its business beyond the UAE. The company, which develops digital tools that are broadly used in Emirati schools, said today that it will sell 20% of its shares during a subscription period that starts May 28, with trading on the ADX expected to start June 12. “We intend to solidify our market leadership at home and grow our presence across our target markets through continued investment in our digital capabilities, broadening our product offering and expanding our geographic footprint,” Alef CEO Geoffrey Alphonso said in a statement. First Abu Dhabi Bank and EFG Hermes UAE were appointed as lead managers and bookrunners for the IPO.
STUDIO BOSS
RedBird IMI completed its $1.45 billion acquisition of All3Media, the largest independent production company in the U.K., after receiving approval from British, U.S. and German regulators. Under the agreement, Jeff Zucker, CEO of Abu Dhabi-backed RedBird IMI, becomes All3Media’s chairman, while All3Media CEO Jane Turton will continue to lead the company. The London-based studio, which is jointly owned by Warner Bros. Discovery and Liberty Global, has 50 production labels, including Studio Lambert, Raw, Two Brothers Pictures, Silverback Films, New Pictures and Neal Street Productions. Redbird IMI gave up on its bid to take over London’s Telegraph newspaper last month after encountering vigorous government opposition.
💲 Sovereign Circuit
Mubadala: The infrastructure arm of Mubadala has made a “cornerstone” investment in PAG’s Asia Pacific renewable energy platform, known as PAG REN I, to facilitate businesses in the country buying solar power. Meanwhile, Mamoura Diversified Global Holding, a unit of the Abu Dhabi sovereign wealth fund, expects credit losses of about $315 million related to loans issued to Austria’s now-insolvent Signa real estate conglomerate, Bloomberg reports.
Public Investment Fund: Maxim Timchenko, CEO of Ukraine’s DTEK, said the energy company is in high-level talks with the PIF and other Saudi institutions regarding possible investments.
ADQ: The Abu Dhabi sovereign wealth fund established an infrastructure investment fund in Jordan that aims to spend $5 billion on development projects in the kingdom.
↪↩ Closing Circuit
🛢️ Energy Finance: The Arab Energy Fund, which makes loans to Arab oil exporting countries, signed a preliminary agreement valued at $200 million with the Saudi Arabian Industrial Investments Co., known as Dussur, to finance so-called “greenfield” energy projects.
🔌 Extra Power: Kuwait signed contracts on Sunday to buy 500 megawatts of power from Oman and Qatar through the GCC Interconnection Authority.
📞 No Deal: Telecom Egypt called off its plan to sell a stake in Vodafone Egypt, explaining that the state owned company earns significant returns for the government from Vodafone shares.
📬 In the Mail: An investment group led by Phoenix Insurance and municipal services provider Milgam won the bidding to buy Israel’s financially distressed postal service from the govenrment for $124 million, less than half the price at which it was valued last year.
🗣 Circuit Chatter
📈 Iran Uncertainty: Oil prices rose today on geopolitical concerns after the death of Iran’s President Ebrahim Raisi was announced and Saudi Crown Prince Mohammed bin Salman canceled a trip to Japan because of his father King Salman’s medical treatment. Brent crude gained 32 cents, or 0.4%, to $84.30 a barrel in early trading.
🚁 Air Taxis: The Qatari Ministry of Transport announced plans to test the use of electric air taxis and delivery planes in early 2025.
⛱️ Sunny Spots: New hotspots like the hotel Mondrian Cannes and the Palm Beach Cannes resort are revitalizing the scene in the south of France enclave as attendees gather for the 77th Cannes Film Festival now underway and the Cannes Lions International Festival of Creativity that starts next month, The Information reports.
🛫 Flight Deal: Wizz Air Abu Dhabi will expand its Multipass subscription service that allows frequent flier club members to book tickets for as low as $71.
🖥️ Quantum kingdom: Pasqal, a Paris-based quantum computing startup, signed a partnership agreement with Saudi Aramco to install the kingdom’s first quantum computer at the oil giant.
🧳 Big Spenders: Saudi Arabia’s tourism strategy rests on attracting heavy-spending travelers from China, India and Europe, rather than mass volumes of other visitors, The National reports, based on interviews with airlines, tourism project developers and hoteliers.
🌍 Power Circuit
Saudi Arabia’s King Salmanunderwent medical tests on Sunday due to high fever and joint pain and a lung infection was diagnosed, state-run Saudi Press Agency reported.
Saudi Arabia’s Crown Prince Mohammed bin Salmanpostponed a four-day trip to Japan due to concerns over the king’s health. On Sunday, the kingdom’s de facto ruler met with U.S. National Security Adviser Jake Sullivan to discuss a broad bilateral agreement and the war in Gaza, the Saudi state news agency reported.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Chairman of the Executive Council of Dubai and Chairman of the Higher Committee for Future Technology and Digital Economy, inaugurated the Dubai AI Campus cluster at the Innovation Hub in the Dubai International Financial Centre on Saturday.
Sheikha Fatima bint Mubarak, widow of the UAE’s late President Sheikh Zayed, who is known as “Mother of the Nation,” and Chairwoman of both the General Women’s Union and the Family Development Foundation, launched the Kindness and Mercy Campaign, which encourages positive attitudes toward marriage among young people.
➿ On the Circuit
Christiana Maxion, UAE matchmaker and founder of dating app Maxion, announced her startup is looking to raise $1.5 million in seed investment to fund expansion in the Middle East.
Hadley Gambleinterviewed actress and UNHCR Goodwill Ambassador Cate Blanchett in Cannes today.
Rakefet Russak Aminoach, former CEO of Bank Leumi, Israel’s largest bank, was named chairwoman of Hailo, a startup valued at $1.3 billion that develops AI chips.
🎶 Culture Circuit
📽️ New Chapter: The inclusion of “Norah,” Saudi Arabia’s first movie in the Cannes Film Festival official selection is the start of a remarkable chapter in Saudi Cinema, according to Jomana Al Rashid, CEO of Saudi integrated media group SMRG and Chairwoman of the Red Sea Film Festival. Director Tawfik Alzaidi’s debut film was picked for Un Certain Regard, a category of the festival that showcases unusual, innovative and non-traditional films.
🥊 Boxing Champ: Ukraine’s Oleksandr Usyk became the undisputed heavyweight boxing world champion after beating Britain’s Tyson Fury at Saudi Arabia’s Kingdom Arena in Riyadh early Sunday.
📷 Photo of The Day
Participants in the Global Prompt Engineering Championship, which kicked off today at Emirates Towers Boulevard and the Museum of the Future in Dubai under the patronage of Sheikh Hamdan bin Mohammed, Crown Prince of Dubai. Thirty competitors from 13 countries are competing for a prize pool of AED 1 million ($272,294) across three categories: art, literature and coding. (Photo: Dubai Future Foundation)
🗓️ Circuit Calendar
May 18-26, Abu Dhabi, UAE. Abu Dhabi Comedy Week. Standup comics Dave Chapelle, Aziz Ansari, Bassem Yousef and Chris Tucker headline the first annual festival. Etihad Arena.
May 20-21, New York City: SALT iConnections. SALT brings together more than 1,500 asset owners, asset managers and entrepreneurs for curated capital introductions and panel discussions. The Glasshouse.
May 20-22, Riyadh, Saudi Arabia: Future Aviation Forum. Airline executives, investors and government ministers gather for the third annual conference on the aviation industry. King Abdulaziz International Conference Center.
May 25-26, Dubai, UAE. Summer Blessings. Dubai festival celebrates the palm tree as the UAE’s national icon with live performances, date-themed events and artisan marketplace. Shindagha Museum.
May 29-31, Marrakech, Morocco: GITEX Africa. The second edition of the biggest tech and startup gathering in Africa. Place Bab Jdid.
June 5, Hong Kong: Bloomberg Wealth Event. A gathering to bring actionable intelligence to portfolio managers and other dealmakers and analysts from asset managers and owners, family offices and hedge funds. Conrad Hong Kong.
June 23-26, National Harbor, Maryland: SelectUSA Investment Summit. The highest profile event in the U.S. to facilitate business investment by connecting thousands of investors, companies, economic development organizations and industry experts to make deals. Gaylord National Resort and Convention Center.
The Daily Circuit: Tadawul draws investors to Riyadh + Gulf tourism boom
👋 Hello from the Middle East!
Today we’re looking at the latest numbers that show Gulf tourism is booming, how efforts to diversify from oil made a record impact last year on the UAE economy, Redbird IMI’s $1.45 billion acquisition of All3Media and a possible IPO in the works for Saudi Global Ports Co. But first, the Tadawul exchange summons investors to Riyadh.
Saudi Arabia is touting the strength of its stock exchange as the Saudi Capital Markets Forum gets underway today in Riyadh. The two-day forum is being hosted by the Saudi Tadawul Group, the parent company of the kingdom’s main stock exchange that goes by the same name, which had a market cap of $2.9 trillion at the end of January.
The kingdom has sought to attract foreign investment through its capital markets by implementing reforms, aligning regulatory frameworks with international standards and gaining inclusion in major global indices while at the same time pursuing investor outreach and investing in technology and infrastructure, according to Saudi Tadawul Group CEO Khalid Al-Hussan.
The hard work appears to be paying off. IPOs in Saudi Arabia and the UAE have been booming since late 2021. The total number of shares traded on the Saudi exchange topped 8 billion in January, an almost fourfold increase from the prior January, according to data published by the exchange.
“Momentum is great, and all the indications so far for 2024 are excellent,” SNB Capital’s Head of Investment Banking Zaid Ghoul said in an interview with Bloomberg, highlighting a surge in share trading in recent months. The level of activity is encouraging more firms to prepare for IPOs, Ghoul said.
The Saudi Tadawul is also looking beyond capital markets. Last month, it announced plans to buy a 33% stake in the Dubai Mercantile Exchange, bolstering its position in global commodities markets. Once the deal closes, Saudi Tadawul will become the largest shareholder next to the CME Group and the exchange will be rebranded as the Gulf Mercantile Exchange.
Thinking shorter term: Most major stock markets in the Gulf fell in early trading today after data showed U.S. producer prices increased more than expected in January, adding to concerns over inflation and dampening hopes for early rate cuts by the Federal Reserve, Reuters reports. Most GCC countries, including Saudi Arabia and the UAE, peg their currencies to the U.S. dollar and follow the Fed’s policy moves closely.
The UAE’s non-oil foreign trade reached a record $953 billion in 2023 as the Gulf state signed free trade agreements with India, Turkey and Indonesia while making broad efforts to diversify its economy. Trade with its 10 most important foreign partners grew 26% last year, according to figures released by the government on Sunday. “The expansion of foreign trade is a pillar of the UAE’s economic strategy, a driving force of growth and diversification and a catalyst for sectors that focus on innovation, knowledge and advanced technology,” Minister of State for Foreign Trade Thani Al Zeyoudi said in a statement.
GULF GLOBETROTTERS
Tourism is booming in the Gulf. Dubai International Airport surpassed its pre-pandemic annual passenger traffic last year and beat its own forecast on the back of a strong performance in the second half of the year. The airport handled about 87 million passengers in 2023, up 32% compared to the prior year, as it edged past the 86.4 million recorded in 2019, operator Dubai Airports said on Monday. The figures are also above its last full-year forecast of 86.8 million. Saudi Arabia meanwhile, recorded a 56% increase in incoming tourists between 2019 and 2023, leading the UN’s World Tourism Barometer in a report on how countries have recovered from the pandemic-induced plunge in tourism.
💲 Sovereign Circuit
Public Investment Fund: Saudi Global Ports Co., which is owned by the PIF, and Singapore’s PSA International Pte, are considering an initial public offering in Riyadh, Bloomberg reports. NPR examines how Saudi Arabia has used the PIF to build NEOM and overhaul its economy by investing in a wide range of industries unconnected to oil.
Mubadala: The owners of Israel’s Tamar natural gas field, which include Mubadala, Chevron and several Israeli partners, approved plans to expand production at the offshore site in the Mediterranean. Mubadala-backed Yahsat has launched its Project Sky initiative to target previously unserved communities via multi-orbit satellite constellations.
🗣 Circuit Chatter
🏛️Rothschild in Riyadh: Rothschild & Co. said it will expand its operations in Saudi Arabia by hiring or relocating bankers for a new office in Riyadh’s King Abdullah Financial District.
🛫 Sharjah-Bound: Fly Jinna, a low-cost airline owned by Pakistani and Emirati companies, said it will start operating two flights a day between Islamabad and the UAE’s Sharjah Airport.
🧳Valued Visa: Dubai’s liberal granting of so-called Golden Visas has kept valued expatriate professionals from leaving and helped sidestep the commercial real estate crisis that has hurt other big cities, Bloomberg reports.
🏖️Party People: Known for producing events like “the loudest weekend in Riyadh,” and the Saudi Arabian Grand Prix concerts, MDLBEAST is set to manage a luxury beach club on NEOM’s Sindalah Island.
👕In Style: Beyoung, an Indian D2C fashion brand, said it has received a strategic investment from the Royal Office of Sheikh Tahnoon Bin Saeed in the UAE.
↪↩ Closing Circuit
🎞️ Media Acquisition: RedBird IMI, a joint venture between RedBird Capital Partners and Abu Dhabi’s International Media Investments, has agreed to acquire film production company All3Media for $1.45 billion from Warner Bros Discovery and London-based Liberty Global.
☪️Islamic Finance: Qatar’s Islamic fintech market is predicted to double in volume to $4 billion a year by 2027, according to the Global Islamic Fintech Report.
🛩️ Moroccan Aeronautics: Figeac Aero, a French company specializing in manufacturing aeronautic equipment, opened a new $14 million production facility in Casablanca, Morocco.
🔬 Stem Cells: Kadimastem, an Israeli startup that uses stem cells to develop medical treatments, plans to trade its shares on the Nasdaq by merging with a Canadian company and delisting in Tel Aviv.
🏗️Waterfront Towers: The Omani capital of Muscat’s low-slung skyline is set for change as construction begins this year on the $1.3 billion Al Khuwair Downtown and Waterfront Development Project, featuring a cluster of 30- and 40-story buildings.
🌍 Power Circuit
The Emir of Kuwait, Sheikh Mishaal Al-Ahmed Al-Sabah, hosted Yasir Othman Al-Rumayyan, Governor of Saudi Arabia’s Public Investment Fund, at Seif Palace in Kuwait City on Sunday for a meeting to discuss economic collaboration between the two Gulf states.
➿ On the Circuit
Latifa bint Mohammed bin Rashid Al Maktoum, Chairperson of Dubai Culture and Member of the Dubai Council, today inaugurated the ‘Introducing Zayed National Museum: The Foundations of Unity’ exhibition, being held at the Etihad Museum in Dubai from Feb. 18 until Dec. 5.
Wall Street investor Ken Moelis has turned his investment bank Moelis & Co. into one of the biggest dealmakers in the Middle East by cultivating relationships in the UAE and Saudi Arabia, Bloomberg reports.
Dana White, owner of Ultimate Fighting Championship, tells Tucker Carlson about why Abu Dhabi’s support for his mixed martial arts league was critical during the COVID-19 pandemic.
Moza Al Futtaimwas named Chief AI officer of Al Futtaim Group, the Dubai-based mall developer and retail conglomerate owned by her grandfather.
Qatar Energy Minister Saad Al Kaabi promised more LNG deals between his country and European and Asian firms.
🎶 Culture Circuit
🎙️ A Star Is Born: Universal Music Group plans to open a branch of Capitol Studios in the UAE – the first outside of Hollywood – in collaboration with UAE music firm DGMC. The location of the new studios is not confirmed but plans call for a Dolby Atmos mixing room, state-of-the-art recording equipment and rehearsal rooms for artists and writers. A new record label under the deal will be a joint venture between the two companies and will work to turn artists from the region into global stars, according to a statement.
📷 Photo of the Day
American actor Dave Bautista greets fans during the Middle East premiere of “Dune: Part Two” at VOX Cinemas at Abu Dhabi’s Galleria Mall yesterday. The second installment of the sci-fi epic, starring Timothee Chalamet and Zendaya, is set for wider release in the region on February 29. (Getty Images)
📅 Circuit Calendar
Feb. 19-20, Riyadh, Saudi Arabia: Saudi Capital Markets Forum. A gathering of government ministers, banks and local publicly traded companies to discuss integrating emerging markets with established financial systems. King Abdullah Financial District.
Feb. 21-22,Dubai, UAE: Step Conference. The Dubai edition of the leading tech festival for emerging markets. Internet City.
Feb. 22-23, Miami Beach, FL: FII Priority Miami. A summit on disruptive technology and investment trends hosted by the Future Investment Initiative Institute. Faena Hotel Miami Beach.
Feb. 26-29,Doha, Qatar: Web Summit Qatar. A Middle East edition of the technology crowd mega-event, gathering investors, entrepreneurs and business leaders. Doha Exhibition and Convention Centre.
Feb. 28-29,Abu Dhabi, UAE: Investopia. A gathering of investors hosted by SALT and Investopia, an investment platform launched by the UAE Ministry of Economy and backed by Mubadala and the Department of Economic Development. St. Regis Saadiyat.
March 1,Abu Dhabi, UAE: Abu Dhabi Family Office Summit. One of the largest meetings in the region for family office leaders and investors. Saadiyat Rotana.
March 4-7,Riyadh, Saudi Arabia: LEAP. A global technology conference for developers, startups, investors, C-suite and media. King Abdul Aziz International Conference Center.
March 5-6,Doha, Qatar: International LNG Forum. Gathering of industry leaders and key stakeholders to discuss the future of gas in a key export market. InterContinental Doha Beach.
