DUBAI - Dubai-based Averda International, one of the largest waste management firms in the Middle East and North Africa, is planning to sell a stake in the business, sources familiar with the matter said.
The company is working with Moelis & Co to arrange the transaction, which is expected to be a majority stake in the business, said the sources, declining to be named as the matter is not public.
Averda did not immediately respond to a request for comment when contacted by Reuters on Thursday. Moelis declined to comment.
Founded in 1964 in Lebanon, Averda provides services to public and private sector clients, covering around 12 million residents across eight countries in the Middle East, Africa and South Asia.
Averda’s minority shareholder, Gulf buyout firm Growthgate Capital, in 2008 acquired a 33.3% stake in the company, whose main business is to clean, collect and recycle waste.
The company was in talks to go public through a merger with blank-check firm Better World Acquisition Corp earlier this year, which were abandoned. It then considered an initial public offering in the United Arab Emirates or Saudi Arabia. The company also considered an IPO in 2019, with sources saying at the time the company could be valued about $600-$700 million.
Waste management is a key focus of the United Arab Emirates (UAE) government which has said it aims to cut the adverse environmental impact of cities by focusing on air quality and municipal and other waste management.
(Reporting by Hadeel Al Sayegh; Editing by Stephen Coates)