Dubai Group sells 48.36% Shuaa stake to Abu Dhabi Financial Group

Dubai Banking Group (DBG), a subsidiary of Dubai Group, will sell 48.36 per cent stake in investment bank Shuaa Capital to Abu Dhabi Financial Group (ADFG) for an undisclosed amount.

The completion of the sale is subject to regulatory approvals.

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, said: "The sale of Dubai Banking Group’s stake in Shuaa is in line with Dubai Group’s restructuring agreement."

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."

Mustafa Kheriba, Chief Operating Officer, ADFG, added: "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."

ADFG has assets under management reaching over $3.5 billion.

The first half of 2016 has been prolific for ADFG, having increased its stake in GFH Financial Group; 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; 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.

Alternative investment firm Abu Dhabi Financial Group, Dubai-based Arqaam Capital and Al Mal Capital were among the bidders for Dubai Banking Group's stake in Shuaa, Reuters reported on May 31.

Shuaa's shares were up 2.3 per cent on Wednesday prior to the disclosure.