Qatar fund is said to explore asset sales as new deals on hold
Qatar’s sovereign wealth fund is weighing more asset sales after reducing holdings in Credit Suisse Group AG and Rosneft PJSC to support the country’s economy amid a standoff with its neighbours.
The Qatar Investment Authority, which holds shares in companies ranging from Glencore Plc to Barclays Plc, is considering selling some of those stakes. The fund may use some of the proceeds to support the country’s financial sector and is not planning any new major investments, it was reported.
The QIA, which was created to handle the windfall from the world’s largest liquefied natural gas export base, is reassessing its US$320-billion portfolio as it comes under pressure to support Qatar’s economy.
Last month the fund sold US$417 million of shares in Tiffany & Company, weeks after cutting its direct shareholding in Credit Suisse. The QIA and Glencore also agreed to sell most of the stakes they purchased in Rosneft at the end of last year.
Bankers and lawyers who used to pitch acquisition targets to the QIA are now proposing asset sales, and have been told not to expect any major investments by the fund in the near term.
The fund has not formally mandated financial advisers to sell assets but is considering which stakes are best positioned to be sold, they said.
US plans
The fund plans to spend most of what remains of its US$45-billion investment target on US assets as it seeks diversification, CEO Sheikh Abdullah Bin Mohammed Bin Saud Al Thani said last month.
The QIA is also considering selling some of its extensive property portfolio, especially in the UK where it owns stakes in London’s Savoy Hotel, the Shard skyscraper and the Olympic Village. The fund plans to sell an office building in London’s Canary Wharf financial district which is leased to Credit Suisse, people familiar with the matter said last month.
The QIA has injected billions of dollars into local banks to shore up liquidity, people familiar with the matter said in June, after some lenders in Saudi Arabia, the United Arab Emirates and Bahrain started withdrawing funds from the country.
Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic and transport links with Qatar on the 5th June, accusing the nation of supporting Sunni extremist groups and Iranian-backed militants. Qatar has repeatedly denied the charges.
The fund last year saw its biggest overhaul since 2014, grouping US$100 billion of investments in local companies into a new unit and abandoning the Qatar Holding name synonymous with its highest-profile deals.