Americana Said Valued at $4 Billion in Alabbar-Led Takeover

  • Value represents a 36 percent premium to the market cap
  • Adeptio investors said to plan to take Americana private

The investor group buying Kuwait Food Co. has valued the operator of KFC restaurants in the Middle East and North Africa at about $4 billion in their agreement to buy out the company’s family owner, according to people with knowledge of the matter.

Adeptio LLC plans to take the Kuwaiti company, known as Americana, private, the people said, asking not to be identified as the information is confidential. The consortium, led by Emaar Properties PJSC Chairman Mohamed Alabbar, includes prominent United Arab Emirates and Saudi Arabian families, the people said. The investor group is conducting due diligence on the deal and terms may change based on the outcome, they said.

Mohamed Alabbar

Photographer: Medin Halilovic/Anadolu Agency/Getty Images

A valuation of $4 billion represents a 36 percent premium to Americana’s market value at the close of trading on Thursday. Dubai-based Adeptio said last month it had signed an initial accord to buy a stake from the Al-Kharafi family’s financial services firm Al Khair National for Stocks and Real Estate LLC, which owns more than two-thirds of Americana’s shares and that it would offer to take over the remaining shares.

Americana said in a statement that it isn’t aware of a $4 billion valuation and referred to its main shareholder, the Al Khair company, for further comment. Al Khair added that it is a private company so it isn’t required to respond to media reports. Alabbar declined to comment through an external spokesman.

Americana shares advanced 1.7 percent to 2.34 dinars as of 12:28 p.m. local time, after gaining 4.6 percent on Sunday.

Americana operates franchises of restaurant brands such as KFC, TGI Friday’s Inc. and Pizza Hut in the region. It also produces California Garden beans and Farm Frites frozen vegetables under its food manufacturing business. Adeptio was seeking to raise as much as $2 billion from banks to fund its bid, people familiar with the matter said in February.

Adeptio’s agreement with Americana culminates an on-off sale process stretching back at least two years in which the Al-Kharafi family had tested investor interest in the company without concluding a deal. Singapore’s Temasek Holdings Pte and Saudi Arabia’s Savola Group teamed up to bid last year, while KKR & Co. and CVC Capital Partners Ltd. made an offer in 2014, people with knowledge of the matter said at the time. BRF SA, the Brazilian food maker, had also held talks with the company, its chairman said in an interview in 2014.

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