Canada’s Brookfield acquires Network International for $2.8bn

Canada’s Brookfield acquires Network International for $2.8bn

Brookfield Asset Management has agreed to acquire Dubai’s Network International Holdings in a deal valued around $2.8bn (GBP2.2bn), as the Canadian investment firm seeks to bolster its presence in the Middle East region’s payments sector. The investment firm reached a deal to pay 400 pence per share in cash, which represents a premium of about 64 per cent to Network’s closing price on April 12 – the last business day before the start of the offer period. The deal implies an enterprise value multiple of approximately 15.7 times Network’s EBITDA for the financial year ended December 31, 2022. “The boards of Bidco and Network are pleased to announce that they have reached an agreement on the terms of a recommended cash acquisition pursuant to which Bidco shall acquire the entire issued and to be issued share capital of Network,” Brookfield said in a bourse filing. Brookfield said the deal would be financed by a combination of equity investment, as part of which Brookfield Business Partners expects to invest up to about $150m. The balance of the equity investment will be funded from Brookfield institutional partners, in addition to equity funding from First Abu Dhabi Bank (FAB), subsidiaries of Mubadala Investment