Abraaj Capital sells stake in Maktoob.com Inc

The Abraaj stake, which was acquired in 2005 by the Abraaj Buyout Fund, was sold to Tiger Global Management, an existing shareholder in Maktoob.

Founded in 2000 and headquartered in Amman, Jordan, Maktoob is the leading Internet portal in the Arab world, providing a variety of online services to its millions of users, including the most-visited Arabic-language auction facility (Souq.com), the first Arabic-language search engine (Araby.com), an interactive TV joint venture with MBC (Maktoob TV), the largest Arabic matrimonial website (Bentelhalal.com), the leading online Arab sports community (Sport4ever.com), and Arabic and English web-based email and chat rooms. Maktoob also offers prepaid online payment cards under the brand name CashU.

Maktoob.com recently reached a significant milestone when it was ranked as the 102nd most visited site on the Internet globally, the most visited Arabic site in the Arab World and among the top 10 most visited global sites in each of the six GCC states. In Saudi Arabia Maktoob.com is the sixth most visited global website and it is among the top 20 in Egypt.

Arif Naqvi, Vice Chairman and Chief Executive Officer of Abraaj Capital, said: "Led by a pair of bright, ambitious young men and operating in a high-growth environment with significant market potential, Maktoob was a very attractive acquisition candidate in 2005. Since our initial investment, the company has realised the promise of growth, significantly expanding its web-based offerings, revenues and gross profits."

He continued: "Today, the leadership status of Maktoob across the Arab world is demonstrated not just by higher page views and user numbers, but also by increased revenues through online advertising. We are extremely pleased to have made a contribution to the company's success, and are confident that Maktoob will continue to expand and prosper in the future."

He concluded: "The Maktoob exit follows extremely successful exits of ONIC Holding (84% IRR), Aramex (68% IRR), Amwal (101% IRR) and Septech Holdings Limited (39% IRR) for the Abraaj Buyout Fund. We are pleased to continue the extremely healthy performance of the fund and expect to have divested from almost all of its remaining portfolio by 2008, making it a six-year cycle of completion at very profitable terms to all our investors, in line with the best performing funds globally."

Samih Toukan, Chief Executive Officer, Maktoob Group, said: "Internet penetration rates continue to increase across the Arab world, and users here are increasingly demanding services tailored to their specific needs - in both English and Arabic. The ownership by Abraaj Capital proved critical in supporting Maktoob's expansion, including the introduction of a broad range of new services that have proved extremely successful. Since 2005, we have grown significantly and further cemented our position as the leading Internet portal, community site and e-commerce provider in the Arab world."

Lee Fixel, Managing Director, Tiger Global Management, said: "Maktoob has proved that it is perfectly placed to meet the needs of the region's booming youth population, which increasingly turns to the web for information, entertainment, shopping and social networking. Thanks to its proprietary technology and marketing expertise, Maktoob has firmly established its leadership position in this increasingly lucrative sector. Through both its organic expansion and mergers and acquisitions, we are confident that the company will continue to demonstrate sustained growth."