Abraaj to cut stake in C&I Leasing

An emerging market-focused private-equity group that was forced into liquidation, Abraaj Group, said it will cut its stakes in Nigeria’s C&I Leasing Plc by not subscribing to a share sale to existing investors.

It would be recalled that Abraaj was forced into liquidation after its founder and CEO was accused of mismanagement and embezzlement of funds.

Nigeria’s largest leasing company, C&I said it will raise 3 billion naira ($8.3 million) through a rights offering to fund the acquisition of offshore vessels for marine and oil business expansion.

According to data compiled by Bloomberg, Abraaj’s shareholding in the company could drop to 49% and 51% after the issuance.

Abraaj Group was the largest PE firm in the Middle East. The group managed about $14 billion, until its downfall last year, saddling investors with losses of $1 billion.

The group’s backers had included the Bill & Melinda Gates Foundation.