Dubai: Shuaa Capital said on Tuesday it has received regulatory approvals that will allow Abu Dhabi Financial Group (ADFG) to buy 48.36 per cent stake or 515 million shares. The deal may be valued at Dh659 million on Tuesday’s closing price, according to Gulf News calculations.
The approval was received from central bank of the UAE and the Securities and Commodities Authority in respect of the acquisition through a special purpose company of ADFG called as Shine Investments, Shuaa Capital said in statement posted on Dubai Financial Market’s website. The stake will be bought from Dubai Financial Group Holding Company, and the seller has till January 13 to execute the transaction.
SCA’s approval of the acquisition transaction does not guarantee that the potential acquirer will consummate the transaction as it is possible that the acquirer may withdraw from its execution or the purchase and sell orders may not match, the company said in the statement.
“We expect the acquirer to commence the deal procedures on the DFM shortly via a special deal,” the statement added.
Earlier in June, the ADFG had said once the transaction has completed, it 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.
“The sale of Dubai Banking Group’s stake in SHUAA is in line with Dubai Group’s restructuring agreement. ... we are pleased to have found in ADFG a strong, strategic partner to support SHUAA’s future development and long-term growth prospects,” Fadel Al Ali, Chairman, Dubai Group, said on June 8.
Last week, Shuaa Capital said its net loss for the nine months to September expanded to Dh113.6 million from Dh28.6 million in the same period last year. The total revenues for the nine months to September edged up slightly to Dh138.7 million from Dh138.1 million.
The third quarter saw total revenues grow to Dh48.7 million, a 42 per cent increase on the third quarter of 2015 when total revenues were Dh34.3 million. Net loss was Dh35.3 million for the quarter as compared to net loss of Dh28.6 million in the corresponding quarter of 2015.
