Monday, Jun 20, 2011
Gulf News
Abu Dhabi Abu Dhabi Commercial Bank (ADCB) said yesterday that Malaysia’s central bank had approved its sale of a 24.9 per cent stake in RHB Capital Berhad for about Dh7 billion to Abu Dhabi-based Aabar Investments.
“After considering all related costs i.e. exchange rates, hedging, cost of funding etc.... this transaction shall contribute approximately Dh1 billion to the bank’s overall profit,” ADCB said in a statement to the Abu Dhabi Securities Exchange, where its shares are listed.
“The realised funds shall be used in line with the bank’s strategy to strengthen its balance sheet and focus on local market,” it added.
ADCB’s sale of its stake in RHB to Aabar lifted ADCB’s stock which closed yesterday 1.86 per cent higher at Dh3.28.
The deal was concluded on Friday at a signing ceremony witnessed by General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, who was on an official visit to Malaysia.
“The purchase of this stake in RHB adds a core asset to Aabar’s financial services investments portfolio.
“We are impressed by the strong performance achieved by RHB and are excited by the opportunity to potentially participate in domestic consolidation and regional expansion,” said Mohammad Badawy Al Hussainy, Aabar’s chief executive officer.
Dh7b
is the size of RHB Capital Berhad deal
1.86%
gain made by ADCB shares yesterday
finalised
By Himendra Mohan Kumar?Staff Reporter
Gulf News 2011. All rights reserved.
