Bloomberg: IPOX®’s Lukas Muehlbauer Comments on Abu Dhabi Delistings and State Control

Bloomberg’s Mideast Money newsletter examined recent developments in Saudi Arabia and Abu Dhabi for signals about how Gulf officials are approaching their public equity markets. In Abu Dhabi, sovereign investor L’imad Holding moved to take AD Ports private after seeking to buy out minority shareholders in utility TAQA, bringing two strategically important companies more fully under state control.

Bloomberg noted that the transactions should not necessarily be interpreted as a broader retreat from public markets.

IPOX®’s Lukas Muehlbauer provided historical context for the transactions, pointing to comparable cases in which governments increased control over strategic assets. Bloomberg cited examples including Temasek taking Singapore transport operator SMRT private, France’s nationalization of EDF, and Malaysia’s delisting of an airline and airport operator.

Muehlbauer highlighted the common strategic rationale behind such transactions:

“The rationale differed somewhat by deal, but the common theme was that the state wanted greater control over strategically important assets, either to invest for the long term or carry out restructuring.”

Read the full article by Laura Gardner Cuesta on Bloomberg: What Saudi Arabia, Abu Dhabi Stock Market Moves Signal