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Adia mulls $1.1b investment in Nestle JV

The investment would be into Froneri, an ice cream manufacturer

Abu Dhabi Investment Authority (Adia) is reportedly considering a $1.1 billion investment in a French company that was set up as a joint venture with Nestlé.

The investment would be into Froneri, an ice cream manufacturer that was established in 2016 as a partnership between Nestlé and PAI Partners, a private equity company, Bloomberg reported.

The deal could put the value of Froneri, which includes top brands like Haagen-Dazs, at $10 billion or more, a news agency quoted the sources as saying.

No final agreement has been reached with Adia so far, although Abu Dhabi’s sovereign wealth fund, Nestlé and PAI declined to comment on the matter.

Established in 2016, the Froneri JV combines activities in over 20 countries in Europe, the Middle East, Argentina, Australia, Brazil, the Philippines and South Africa, according to the PAI website.

In 2013, PAI acquired UK-based R&R Ice Cream from Oaktree Capital Management and other investors. Three years later the company merged with Nestle’s European ice cream business to create Froneri.

Adia, ranked among the world’s top 10 sovereign wealth funds, has assets under management of $968 billion, according to Global SWF. With a highly diversified portfolio that spans geographies, asset classes and asset types, the wealth fund is to generate consistent, long-term returns throughout market cycles. Its portfolio comprises more than two dozen asset classes and sub categories, from equities and fixed income to hedge funds, real estate, private equity and infrastructure

Last month Adia’s wholly owned subsidiary Platinum Ivy teamed up with private equity companies CVC and Nordic Capital to offer $14.51 per share for Hargreaves Lansdown.

In a separate deal, Adia and US infrastructure investor I Squared Capital have appointed investment bankers to explore the sale of up to $400 million worth of their stake in Cube Highways InvIT, an Indian infrastructure investment trust.

Adia and I Squared Capital collectively hold a 59.5 percent stake in the InvIT. According to the report, the companies have appointed JP Morgan and Axis Capital to find buyers. Discussions with prospective buyers have begun.