Abu Dhabi executes market move in market

Multiply Group’s Strategic Acquisition of 2PointZero and Ghitha Holding

Deal Background

Abu Dhabi-based investment firm Multiply Group has announced plans to acquire 2PointZero and Ghitha Holding through a share-swap deal, creating an investment group worth around $32.7 billion (AED 120 billion). The transaction will be executed via a share issuance by Multiply Group, increasing its total share capital from $762.4 million (AED 2.8 billion) to $2.35 billion (AED 8.64 billion).

Motivations and Rationale

The deal represents a strategic move by Multiply Group to consolidate its position as a diversified investment powerhouse in the region. By bringing together 2PointZero’s expertise in energy, mining, and financial services, and Ghitha Holding’s strengths in agriculture, food production, and distribution, Multiply Group aims to manage and grow its assets more efficiently under a single, publicly listed entity.

Sector and Market Signals

• The acquisition highlights Multiply Group’s focus on “megathemes” such as energy transition, food security, and supply chain resilience – all critical areas for the UAE and the broader region.
• The deal aligns with the group’s strategy of unlocking value from existing assets and reinvesting in new growth areas, as evidenced by its recent divestment of PAL Cooling Holding and acquisition of ISEM Packaging Group.
• The transaction underscores the continued dynamism and consolidation in the UAE’s investment landscape, as players seek to build diversified, tech-enabled platforms to capitalize on emerging opportunities.

Implications for Private Equity

The Multiply Group deal exemplifies the growing role of large, diversified investment companies in the regional private equity landscape. These firms are leveraging their access to capital, industry expertise, and technological capabilities to execute complex, transformative transactions that reshape entire sectors. This trend is likely to continue as private equity firms seek to scale their platforms and drive synergies across portfolio companies.

Immediate Outlook

The completion of the Multiply Group acquisition remains subject to shareholder and regulatory approvals. However, given the strategic rationale and the group’s track record of successful M&A, the deal is expected to receive the necessary approvals and unlock significant value for all stakeholders involved.

Key Takeaways

• Multiply Group’s acquisition of 2PointZero and Ghitha Holding is a strategic move to consolidate its position as a diversified investment powerhouse in the UAE and the broader region.
• The deal aligns with the group’s focus on “megathemes” such as energy transition, food security, and supply chain resilience, and its broader strategy of unlocking value from existing assets and reinvesting in new growth areas.
• The transaction underscores the continued dynamism and consolidation in the UAE’s investment landscape, as large, diversified investment companies seek to build tech-enabled platforms to capitalize on emerging opportunities.

Sources

• The Arab Today Business