Abu Dhabi's ADCB in $102m share buyback deal

Abu Dhabi Commercial Bank's move is the latest stock buyback by the state-owned lender
By Reuters
Thu 11 Jul 2013 10:02 AM

Abu Dhabi Commercial Bank, the UAE's third-largest lender by market value, has bought back shares worth AED377.2m ($102.7m), the latest stock buyback by the state-owned lender.

In total, 77.6 million shares - representing 1.387 percent of its total stock - were repurchased by the lender at a price of 4.86 dirhams each, ADCB said in a bourse filing on Thursday.

The purchase price was equivalent to a 5.6 percent discount to Tuesday's closing share price of 5.15 dirhams. The stock is trading just off the 59-month high achieved on June 20.

It is the second large buy back transaction which ADCB has completed since the regulator gave it permission in January to purchase up to 10 percent of its share capital: on May 2, the bank bought back stock worth 4.68 percent of share capital for AED1.15bn.

ADCB is due to report second-quarter earnings on July 22. In a Reuters poll, the average forecast of six analysts was for ADCB to post a 6.87 percent rise in net profit for the period.

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