Abraaj Group poised to acquire Kudu

Private equity firm Abraaj group is hoping to buy a majority stake in Saudi Arabia-based fast food chain Kudu, alongside TPG Capital.

The restaurant group is currently owned by four shareholders, including chairman Abdulmohsen bin Abdulaziz al-Yahya. It has been in talks with the company for months to buy a controlling stake.

Reuters quoted Abraaj Group partner and head of Middle East and North Africa (MENA) Ahmed Badreldin as saying: "It’s about dotting the Is and crossing the Ts, it’s not far."

If the deal happens, it will be TPG’s first investment in the Middle East.

Reuters had previously stated that Kudu is worth around $533m based on a valuation of around 20 times its earnings in 2013.

TPG Capital is also aiming at closing two other deals in North Africa by the end of the year, which includes the Egyptian snack maker Bisco Misr. The company made an approach to buy around 51% in Bisco Misr in July through its Abraaj Investment Management affiliate.

Badreldin further added that a mid-market deal in North Africa would cost the company anywhere between $20m and $40m.

"There is a good deal flow in North Africa. There are plenty of mid-market sized deals, we started (in Egypt) a year ago and locked in at good valuations."

Abraaj is also planning to list a Tunisian firm in the next four-to-five weeks along with the sale of an Egyptian asset. However, Badreldin refused to identify the concerned companies.