(Adds details on acquisitions, context)
By Davide Barbuscia
DUBAI Feb 13 Shuaa Capital is working
on a bolt-on acquisition of a financial services company based
in the United Arab Emirates as part of the investment bank’s
growth plans, chairman Jassim Alseddiqi told Reuters on Monday.
The price for the targeted company, which specialises in
capital markets and securities, would be less than 200 million
dirhams ($54.46 million), Alseddiqi said. He also said
discussions were at an advanced stage and the transaction could
be completed within the next six months.
Alseddiqi is also the chief executive officer of the
investment company Abu Dhabi Financial Group, which bought a
48.36 percent stake in Shuaa Capital last November.
Shuaa is considering financing options as part of its
acquisition plans, Alseddiqi told Reuters, adding that debt
funding options could be looked at specifically for the
financial services company acquisition.
Shuaa Capital is also working on three initial public
offerings (IPO), two of which are likely to be finalised within
2017, Alseddiqi said.
The two companies set to be listed this year are both
UAE-based. One is a real estate company and the other a real
estate investment trust (REIT). The market cap of the REIT
company is three billion dirhams, and the size of the IPO will
be 500 million dirhams, Alseddiqi said.
The third company working on a potential IPO with Shuaa
Capital is in the financial services sector, he said.
Shuaa Capital’s balance sheet and total assets at the end of
2016 amounted to 1.3 billion dirhams, it said in a statement.
The company plans to have some five billion dirhams under
management by the end of this year and a total of almost nine
billion dirhams by 2020, the chairman said.
The bank will continue to focus on the UAE market, but also
Saudi Arabia and Egypt, Alseddiqi said.
Shuaa Capital bought a 14 percent stake in Bahrain’s
Khaleeji Commercial Bank for 9.6 million dinars ($25.49 million)
in December. The Bahraini bank, an Islamic lender, has obtained
approval to list on the Dubai Financial Market, which could
happen over the next few months, Alseddiqi said.
($1 = 3.6724 UAE dirham)
($1 = 0.3766 Bahraini dinars)
(Editing by Jane Merriman)