Abu Dhabi-based First Gulf Bank has announced in a media statement today that it has signed an agreement to acquire Dubai First, the consumer financial services business, from Dubai Financial Group, for Dh601 million in cash.
Established in 2007, Dubai First is a customer finance company specialising in liability and credit card products. Dubai First has a UAE credit card market share of 4.5 per cent and operates out of its Dubai headquarters and branches and sales offices in Abu Dhabi and Sharjah. The company has 464 employees.
This acquisition complements FGB’s strategy of offering more value to an expanding UAE customer base.
André Sayegh, CEO of FGB, said: “We are delighted to welcome the team from Dubai First to FGB. Dubai First’s experience, deep industry knowledge, consumer relationships and partnerships will enhance our retail capabilities. Together with Dubai First, we will serve our customers better and offer them more value.
“The innovative ‘First; spirit of both companies is evident in our names and we shall nurture the Dubai First brand and its portfolio whilst utilizing the synergies to grow the business and provide excellent consumer advice, products, opportunities and benefits. As ever we remain committed to supporting all our consumers and stakeholders goals through our strong financial product capabilities.
“With the full support and advice of KPMG as financial advisor and Norton Rose as legal advisor we were able to conclude this successful transaction,” Sayegh added.
Fadel Al-Ali, Chief Executive Officer of Dubai Group, said: “Since we launched the business in 2007, Dubai First has performed well, even during the turbulent business cycles of recent years, and has built a solid and sustainable book of business. I am confident that FGB will give Dubai First the right support platform to ensure it continues to grow and build its market share in the UAE. The sale is a strategic decision for Dubai Group and is part of our stated plan to sell down assets in order to support our broader ongoing restructuring process. We are pleased to have achieved a solid return on our investment.”
EFG-Hermes acted as sole financial advisor and Freshfields Bruckhaus Deringer as legal advisor to Dubai Group on the transaction.
Aggregate gross assets of Dubai First amounted to approximately Dh700 million as on the date of the latest audited accounts.