The planned sale of the Egyptian drugmaker Amoun Pharmaceutical and other private-equity deals in the Middle East have been jeopardized by political upheavel in the region, the New York Times reported, citing industry officials and a person with knowledge of the transaction.
A group of U.S. investors that included a Citigroup Inc. fund hoped last month to sell Amoun for $1 billion, or more than three times what they paid in 2006, the newspaper said.
Other transactions in the region are being put on hold, the Times said, citing Sarah Alexander, the president and chief executive of the Emerging Markets Private Equity Association in Washington.
The change in thinking follows a spurt in activity last year with Egyptian and Saudi Arabian companies accounting for most purchases, the newspaper added. Intial public offerings will also remain weak after the 10 Arab exchanges lost almost $50 billion in value in the last week of January, the newspaper said, citing Kamco, the asset management arm of Kipco, a Kuwait- based investment firm.
