Standard Chartered Makes $35 Million Equity Investment in Al Jazeera Agricultural Company
Standard Chartered Private Equity (SCPE) announced today the acquisition of a significant minority stake in Al Jazeera Agricultural Company (Al Jazeera), the only fully integrated poultry and chicken feed producer and distributor in Jordan, through an equity investment of US$35 million.
Al Jazeera is headquartered in Jordan and its main products include fresh and frozen chicken to retail consumers and wholesalers, parent and broiler hatching eggs and chicks, and chicken feed.
The proceeds will be used to help position Al Jazeera in achieving its robust growth plans and to support its envisaged geographical expansion. SCPE will be granted two board seats and will provide strategic insight towards delivering on Al Jazeera’s regional expansion ambitions.
This is the first investment in the Middle East and North Africa (MENA) food and agriculture sector for SCPE, first investment in Jordan and the fifth investment overall in the region.
Taimoor Labib, Regional Head of MENA Private Equity & Head of Global Private Equity Portfolio Management at SCPE said: "We are thrilled to become strategic partners with one of the leading poultry companies in Jordan.
“Al Jazeera’s high quality management team, strong growth prospects and successful backward integration has been impressive and we are pleased for this investment to be both our first in Jordan and our first in the MENA food and agricultural sector, as well as our fifth investment overall in the region.
“We look forward to working with our partners at Al Jazeera to take the company to a regional level and assist with its growth story.”
Mr. Labib and his colleague Mr. Tariq Baareh will be joining Al Jazeera Board on behalf of SCPE.
Omar Al Husaini, Chairman of Al Jazeera said: “We are extremely excited to team up with SCPE, whose global network and resources will complement our company’s local industry expertise to become a regional player in the poultry sector.
“SCPE’s investment and team experience will be a cornerstone of Al Jazeera’s expansionary plans in Jordan and the GCC markets and the partnership will bring to Al Jazeera the necessary experience and guidance that will transform the company from a family business to a mature group company.”
SCPE is the private equity arm of Standard Chartered Bank. SCPE invests in companies in need of expansion capital or acquisition finance, and in management buy-outs, and focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East.
More than half of FTSE 100 execs suffer pay cuts, freezes
Pay increases for many executives at the largest UK firms have been put on hold since the start of the pandemic with more than half of the FTSE 100 CEOs having had their salaries frozen in 2021, according to new research from PwC.
The research, based on PwC’s analysis of the first 50 FTSE 100 firms to publish their 2021 annual remuneration reports, reveals that 53% of CEOs and 52% of CFOs have had their pay reviews put on hold, compared to 35% and 30%, respectively, last year, pointing to the pandemic as the main reason.
According to Phillippa O’Connor, reward and employment leader at PwC, the current environment and impact of the pandemic has clearly led shareholders to sharpen their pencils when reviewing executive pay levels this year.
“It is clear from the pay outcomes we have seen to date in the FTSE 100 that companies have exercised restraint when it comes to both determining outcomes for the 2020 performance year and settling pay on a forward-looking basis for 2021,” says O’Conoor.
Bonuses, grants and pensions also affected
But that’s not all. Around a third (31%) of companies either waived, cancelled or reduced their 2020 annual bonuses, with the average payout dropping from just uhnder £1.1m to £843,000.
When it comes 2021 long-term incentive plan (LTIP) grants, these have also been revised in light of the economic impact of the pandemic with 45% of firms making some adjustment to their award, including retaining discretion to adjust outcomes at vesting in respect of windfall gains, reducing grant size, delaying the grant, and even canceling the award altogether.
The study shows that pension levels for incumbent CEOs remain at 15% of their salary, falling to 10% for new hires, bringing them in line with the wider workforce. Eight out of 10 FTSE 100 companies will have aligned incumbent pension levels with those for the wider workforce by the end of 2022.
O’Connor warns that moving forward into AGM season, there is likely to be added scrutiny around any pay rises that are greater than those for the wider workforce and on incentive outcomes that are “either not aligned with business performance or do not take into account the company’s approach towards matters such as diviends and government support”.
What announcements did UK's big firms make?
Back in April 2020, as the pandemic was just getting started, a number of UK companies, mainly insurance and banking stepped forward to review remuneration packages in response to the economic implications of the COVID-19 crisis.
British insurance giant Aviva announced that basic pay increases for its executive directors and the Aviva leadership team would be paused, while the executive directors of Prudential offered that their salaries be reduced and RSA confirmed its exec directors and executive committee would not be receiving cash bonuses for the current year.
The same was true in banking and finance with TSB announcing that its 10-strong executive committee would give up their bonuses in 2020, while Barclays said its chief executive, finance director and chairman would each give a third of their fixed pay for the next six months to charities. Lloyds cancelled its bonus payments and pay reviews in 2020
Other big UK firms including Ryanair, Taylor Wimpey and Rentokil all committed to reducing their executives pay packages.