Dubai Millennium sees 10-plus M&A deals by year-end

By Veronica Brown and Will Rasmussen

DUBAI (Reuters) - Dubai-based Millennium Finance Corp. is advising on at least 10 $1 billion-plus M&A deals in the Middle East, with several expected to be completed by the end of this year, its CEO said on Monday.

M&A clients include Arcelor Mittal Savola Group, Dubai government-owned firm Dubai World, Dubai Islamic Bank and Bahrain Telecommunications Co., Millennium's Chief Executive Keba Keinde told the Reuters Middle East Investment Summit in Dubai.

"We're seeing consolidation in telecoms and financial services, prompted by globalization," he said.

Overall the company was working on 20 M&A deals in which the target company or the acquirer was based in the Middle East.

Keinde also said that Millennium Finance, an investment bank controlled by Dubai Islamic Bank, was lead managing a IPO worth more than $1 billion to be listed in London and Dubai.

"It will be the largest ever done in the UAE. We hope it will happen this year," Keinde said, adding that other lead managers on the issue included Deutsche Bank, Merrill Lynch and Shuaa Capital.

Dubai Islamic Bank said earlier this month it expected to raise the first $800 million of a $5 billion group of private equity funds by April and begin investing in energy and telecom projects in the Middle East and Africa.

Millennium said last year it would set up seven funds that comply with Islamic principles to invest in mainly unlisted companies.

The first two $1 billion funds, focusing on energy and telecommunications, will each raise $400 million from Gulf Arab investors by April

Both funds would then invest up to half of the money within three months.

In November, the manager of the energy fund said it was in talks with companies including Australia's Anzon Energy and Abu Dhabi's Aabar Petroleum about investing in Middle East and African oil fields.

The second, $600 million tranche for each fund would draw funds from Asian, European and North American investors, and likely close after the summer.

Dubai Islamic and Dubai World, owner of port operator DP World, will provide 10 percent toward each fund, which will comply with Islamic law banning investment in companies involved in alcohol, armaments and gambling or lending on interest.