UAE Exchange sells 40% stake

UAE Exchange, one of the largest foreign exchange firms in the United Arab Emirates, has sold a 40 per cent stake to Centurion Investment, the companies said on Tuesday, in a deal said to be worth $2 billion.

"Centurion has acquired a 40 per cent stake in UAE Exchange to expand its business in the financial sector," a statement from Abu Dhabi-based Centurion said, without giving a value for the deal.

A source directly involved in the sale told Reuters: "The deal is valued at $2bn."

Last year, Centurion Investment, a private firm, bought 40 per cent of Abu Dhabi-based New Medical Centre (NMC) for $1.39bn.

UAE Exchange was part of NMC, owned by Indian businessman Bavaguthu Raghuram Shetty, until last year when Centurion acquired NMC.

UAE Exchange is one of the oldest exchange houses in the UAE with 99 branches. It also has 560 branches in 29 other countries.

"Their (Centurion) entry will help us in funding and expanding further," said Sudhir Shetty, chief executive of UAE Exchange, declining to give the sale value as the process is not yet completed.

The sale is likely to be completed shortly, he said.

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