Abu Dhabi Commercial Bank (ADCB) yesterday said it has purchased a strategic stake in a Dubai investment bank that operates in the United Kingdom.
The bank bought 40.8 per cent of Gulf Merchant Group (GMG) for $51 million (Dh187m), making it the single largest stakeholder in the company.
Among other investors is Saudi Arabia-based Abdullah Al Rajhi, who has invested $11m (Dh40.37m) for an eight per cent stake.
"We are targeting to become the investment banking arm of ADCB. Indirectly, we too get access to their retail banking reach," GMG's Chief Executive Officer, Nabil Maaloul, told Emirates Today.
The deal has increased the capital of the bank to $103m (Dh378m), and with the additional money being invested in developing financial services activities. GMG is based in the Dubai International Financial Centre.
According to Maaloul, GMG is looking at acquiring brokerage companies and may eventually go public in the next two years.
"We will go public in another two years time and will be listed on an international exchange," he added.
"With Gulf Merchant Group we plan to explore business opportunities in new growing markets in the Gulf and beyond," said ADCB's chief executive, Ervin Knox.
GMG is setting up Oman Merchant Bank, the country's seventh domestic bank, and is planning an share sale this year, Maaloul said.
Offering international expertise and experience with local know-how, GMG aims to help private and family held groups manage their growth and to help diversify their investments, both in the region and internationally.
By Parag Deulgaonkar
© Emirates Today 2007
