DUBAI Nov 11 TPG Capital and Abraaj Group have
teamed up to compete against KKR & Co as the private
equity firms eye a majority stake in Saudi Arabian fast-food
chain Kudu, three banking and industry sources said.
Riyadh-based Kudu, which operates more than 200 restaurants
in the kingdom, is owned by four individual shareholders,
including chairman and chief executive Abdulmohsen Bin Abdulaziz
Al Yahya, according to data from Zawya, a Thomson Reuters unit.
Abraaj, the Middle East's largest private equity firm, has
recently roped in TPG to the bidding process and was previously
bidding solely for the stake, the sources said, speaking on
condition of anonymity as the matter has not been made public.
Kudu is worth around 2 billion riyals ($533.3 million) based
on a valuation of around 20 times earnings, one of the sources
said. Kudu is expected to have net income of around 100 million
riyals this year, the source said.
KKR, TPG and Abraaj all declined to comment, while Kudu
could not be reached for comment.
Reuters reported in June that a majority stake in the
business has been put up for sale and KKR was one of the