Shareholders of Massar Solutions have mandated HSBC to sell a 40 per cent stake in the United Arab Emirates vehicle rental and fleet management firm, two sources aware of the matter told Reuters on Monday, months after its flotation was pulled.
Invest AD, which owns 51 per cent of Massar, and Abu Dhabi National Energy Company, with a 49 per cent share, are looking to raise an amount similar to what they would have received from the initial public offering (IPO), according to a separate private equity source.
The IPO had valued the 40 per cent stake at Dh576 million ($156.8 million).
Massar Solutions declined to comment when contacted by Reuters on Monday.
HSBC was appointed by Massar's shareholders in August to reach out to strategic and local investors, a UAE investment banker and a finance executive said, speaking on condition of anonymity as the information is not public.
The sources said a local buyer would be preferable because much of Massar's business is tied to government contracts which would need strong relationships with the authorities.