Dubai Banking Group (‘DBG’), a subsidiary of Dubai Group, and Abu Dhabi Financial Group (‘ADFG’) have reached an agreement whereby DBG will sell its 48.36% interest in SHUAA Capital PSC (‘SHUAA’) to ADFG. The completion of the sale is subject to regulatory approvals.
Through its subsidiaries, ADFG has widespread expertise and experience across its core sectors, which include real estate, debt financing, capital markets and other financial services activities. Once the transaction has completed, ADFG will explore opportunities for synergies with SHUAA across the full spectrum of the company, as well as enhancing SHUAA’s deal flow through leveraging ADFG’s extensive network.
Fadel Al Ali, Chairman, Dubai Group, commented: “The sale of Dubai Banking Group’s stake in SHUAA is in line with Dubai Group’s restructuring agreement. We have been a proud partner in SHUAA Capital over the years and we are pleased to have found in ADFG a strong, strategic partner to support SHUAA’s future development and long-term growth prospects.”
Jassim Alseddiqi, Chief Executive Officer, ADFG, said: “ADFG’s acquisition of Dubai Banking Group’s interest in SHUAA will provide us with a significant stake in one of the Middle East’s most illustrious financial services institutions. As a potential leading shareholder in the company, we would look forward to supporting SHUAA achieve its strategic ambitions in order to deliver long-term value for all stakeholders. This transaction represents yet another landmark for ADFG, as we continue to seek high-quality investments across a variety of sectors and geographies.”
Mustafa Kheriba, Chief Operating Officer, ADFG, added: “SHUAA has an outstanding heritage, having played a key role in the evolution of the region’s financial services industry. SHUAA’s exceptional brand name, portfolio of compelling services, formidable management team and loyal client base means the company is well-positioned for future success. ADFG intends to support Shuaa’s future development, and to ensure it delivers value-enhancing services to its clients.”
Since it was founded, ADFG has experienced rapid growth, with assets under management reaching over $3.5bn in a short period. The first half of 2016 has been prolific for ADFG, having increased its stake in GFH Financial Group (“GFH”); unveiled its plans and achieved planning approval to redevelop New Scotland Yard in London, UK; announced its intention to launch an Islamic Bank at Abu Dhabi Global Market with (“GFH”); and co-led on the oversubscribed $500 million Etihad Airways Note.
A further announcement shall be made when the regulatory approvals have been received and the sale has completed.
Emirates NBD Capital acted as exclusive financial advisor to Dubai Banking Group.
Fadel Al Ali, Chairman, Dubai Group
The sale of Dubai Banking Group’s stake in SHUAA is in line with Dubai Group’s restructuring agreement. We have been a proud partner in SHUAA Capital over the years and we are pleased to have found in ADFG a strong, strategic partner to support SHUAA’s future development and long-term growth prospects.