30 June 2009
Private sector investors yesterday agreed to sell their 49 per cent stake in the Emirates Industrial Bank (EIB) to the Federal Government.
The Ministry of Finance previously owned 51 per cent of the bank and the government now becomes the sole owner. A number of investors held 49 per cent of the stake, who agreed unanimously to the sale.
The move is intended to speed up the merger of EIB with Emirates Real Estate Bank (EREB) to create Emirates Development Bank (EDB), which will have a capital of Dh10 billion. The formation of EDB was approved by the Cabinet last week and the new bank is expected to be wholly-owned by the government, which has pledged to contribute Dh5bn to the venture. The merger will be one of the largest to have taken place in the UAE's financial sector.
The decision to transfer the shares was taken at the EIB's annual general meeting at the bank's headquarters in the capital. The meeting also approved a report on the proposed merger by Ernst and Young.
"EIB at its annual general assembly discussed and adopted the assessment report prepared by Ernst and Young, the financial advisor to the process of merging the bank with EREB," said a statement by EIB.
"The general assembly discussed the Federal Government's offer to purchase shares in EIB from the private sector, with the representatives of the private sector stakeholders in the bank unanimously agreeing to sell their shares."
The assembly was followed by a board meeting. Both were chaired by EIB's Chairman, Obaid Humaid Al Tayer, who is also the Minister of State for Financial Affairs. The meetings were co-chaired by Director Mohammed Abdul Baki.
The board reviewed and approved the bank's latest financial report - another important step towards completing the merger.
"The board meeting discussed the financial statement of the bank for the period ending on May 31 of this year," said the statement. "It discussed the credit facilities offered for the same period to the tune of Dh129.5 million for 12 projects and approved the lending."
The bank received credit applications for 17 projects but only 12 were approved and given loans.
Private sector investors yesterday agreed to sell their 49 per cent stake in the Emirates Industrial Bank (EIB) to the Federal Government.
The Ministry of Finance previously owned 51 per cent of the bank and the government now becomes the sole owner. A number of investors held 49 per cent of the stake, who agreed unanimously to the sale.
The move is intended to speed up the merger of EIB with Emirates Real Estate Bank (EREB) to create Emirates Development Bank (EDB), which will have a capital of Dh10 billion. The formation of EDB was approved by the Cabinet last week and the new bank is expected to be wholly-owned by the government, which has pledged to contribute Dh5bn to the venture. The merger will be one of the largest to have taken place in the UAE's financial sector.
The decision to transfer the shares was taken at the EIB's annual general meeting at the bank's headquarters in the capital. The meeting also approved a report on the proposed merger by Ernst and Young.
"EIB at its annual general assembly discussed and adopted the assessment report prepared by Ernst and Young, the financial advisor to the process of merging the bank with EREB," said a statement by EIB.
"The general assembly discussed the Federal Government's offer to purchase shares in EIB from the private sector, with the representatives of the private sector stakeholders in the bank unanimously agreeing to sell their shares."
The assembly was followed by a board meeting. Both were chaired by EIB's Chairman, Obaid Humaid Al Tayer, who is also the Minister of State for Financial Affairs. The meetings were co-chaired by Director Mohammed Abdul Baki.
The board reviewed and approved the bank's latest financial report - another important step towards completing the merger.
"The board meeting discussed the financial statement of the bank for the period ending on May 31 of this year," said the statement. "It discussed the credit facilities offered for the same period to the tune of Dh129.5 million for 12 projects and approved the lending."
The bank received credit applications for 17 projects but only 12 were approved and given loans.
By Nissar Hoath
© Emirates Business 24/7 2009
