Abu Dhabi Capital Management announces the intention of Qannas Investments Limited to raise up to $50 million as part of a $200 million investment program, and admit its shares to trading on AIM

ABU DHABI, United Arab Emirates - Wednesday, January 18th 2012 [ME NewsWire]

Abu Dhabi Capital Management (“ADCM”) today announces the intention of Qannas Investments Limited (the “Company” or “Qannas”) to apply for the admission of its shares to trading on AIM, a market of the London Stock Exchange Plc ("Admission"), and to proceed with an initial offering by way of a placing of its ordinary shares to institutional and other investors.

The Company will take the form of a newly-established, closed-ended investment company incorporated in Jersey and regulated by the Jersey Financial Services Commission. ADCM, an alternative investment management firm based in Abu Dhabi, will act as investment manager to the Company.

Qannas will seek to generate a target IRR of at least 20 per cent by investing in a diversified portfolio of undervalued equity and debt investments, with a focus on the Gulf Cooperation Council (GCC) countries.

Highlights

·         Opportunity to invest in undervalued GCC assets through a manager (ADCM) with a track record in the target region. It is currently intended that the Company’s investments will be held for 3-5 years with the intention of realising values in line with the anticipated economic recovery.

·         Optimal capital use: the capital raising programme is designed to minimize cash drag. Qannas intends rapidly to deploy the proceeds of the IPO and subsequent capital raises to a maximum of $200m. Investors will have full pre-emption rights but will have no obligation to participate in future capital raises.

·         Fee structure designed to align the interests of the investment manager with those of the shareholders.

Qannas Chairman Chris Ward commented, “We believe that this is an under-invested region with strong credentials, including strong economic growth rates and a wealth of natural resources: GCC countries hold 35 per cent of the world’s known oil reserves and 22 per cent of global gas reserves. Liquidity dislocation in the region has led to declines in asset values, creating compelling investment opportunities. Qannas offers a rare opportunity for international investors to access these markets and tap into the expertise of a manager with specialist local knowledge.”

Investment strategy

The Company’s investment strategy is to utilise ADCM’s investment expertise to acquire assets at a discount to their intrinsic value from vendors who are either distressed or seeking to re-position their investment portfolios. It is intended that the Company will invest 80 percent of its capital in the GCC region with the balance utilised opportunistically on a global basis.

Board

The Qannas board will consist of four directors: three independent directors and Jassim Alseddiqi, CEO of ADCM. It will be chaired by Chris Ward.

Investment Manager

ADCM was established in January 2011 and currently manages more than $100 million in assets for institutional and high net worth investors, deployed in private equity and debt investments. The ADCM investment team, which is based in Abu Dhabi, is led by Jassim Alseddiqi and comprises six investment professionals with a total of more than 40 years of investment management and finance experience.

Advisers

Deloitte is acting as Nominated Adviser to the Company and Daniel Stewart & Company as broker. Appleby has been appointed as Jersey legal adviser, and Herbert Smith LLP as English law adviser. BDO is the auditor and reporting accountant. Appleby Fund Administrators (Jersey) Limited will act as administrator and custodian.

Contacts

Tanya Kassab / Sophie Wood

+971 4 455 6151 / +971 4 455 6152

Tanya.kassab@eurorscgme.com/ sophie.wood@eurorscgme.com