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Abu Dhabi Commercial Bank (ADCB), the UAE’s third-biggest lender, is set to sell a stake in its wholly owned subsidiary Abu Dhabi Commercial Properties (ADCP).
The lender has received a binding offer for a majority share acquisition in ADCP from Nine Yards Plus Holding, the real estate arm of EIH Ethmar International Holding, ADCB confirmed on Wednesday.
The bank expects to gain around AED400 million ($108.9mln) from the transaction, which can be completed in the fourth quarter of the year.
In a statement, ADCB said it will retain a 20% stake in ADCP, adding that the deal could position its property management company “on an accelerated growth path”.
The bank and Nine Yards will also retain separate legal status and brand.
“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,” the statement said.
The lender’s net profit reached AED1.942 billion in the third quarter of the year, up by 22% from a year earlier.
(Writing by Cleofe Maceda; editing by Seban Scaria)
