Abu Dhabi: Abu Dhabi Commercial Bank (ADCB) reported that it had received a binding offer for a majority stake acquisition in its wholly-owned subsidiary Abu Dhabi Commercial Properties (ADCP).
In a company disclosure posted to Abu Dhabi Securities Exchange the bank said that the offer was from Nine Yards Plus Holding, an EIH Ethmar International Holding PJSC (“EIH”) subsidiary, acting as its main real estate arm. The deal will be completed during the fourth quarter of 2023.
ADCB will retain a 20 per cent stake in ADCP, selling a majority stake to Nine Yards Plus Holding for an expected gain of Dh400 million.
The bank explained in its disclosure that the sale aligns with ADCB’s strategy to focus on growth and diversity building on strategic partnerships with esteemed UAE companies.
The parent company of Nine Yards Plus Holding, EIH, is a rapidly growing investment holding firm headquartered in Abu Dhabi operating in nine different sectors ranging from real estate, energy, technology, alternative investments, hospitality, healthcare, travel and tourism, financial services, automotive and trading.
Post the sale, ADCB and Nine Yards Plus Holding confirmed that ADCP will retain its separate corporate legal status and brand, ensuring continuity of its processes, operations and services, to best serve its clients. The potential acquisition by Nine Yards Plus Holding is expected to position ADCP on an accelerated growth path, the companies added.
The disclosure document said, “ADCP will continue to leverage ADCB’s strong franchise, financial expertise and relationships in the property management sector, while benefiting from the real estate expertise and growth trajectory of Nine Yards Plus Holding.”