By Staff writer
First Gulf Bank says it has sold 45% stake in First Gulf Financial Services to Integrated Financial Group
First Gulf Bank, the second largest lender by market capitalisation in the UAE, has said a deal to sell its 45 percent stake in brokerage First Gulf Financial Services to an Abu Dhabi investment company has been completed.
FGB, majority-owned by Abu Dhabi's ruling family, has sold the stake to Integrated Financial Group, a subsidiary of Abu Dhabi Financial Group (ADFG), the lender said in a statement.
The bank did not disclose the value, but a source familiar with the matter told Reuters last year that the value of the deal was as much as AED40 million ($11 million).
The sale is in line with FGB's plans to focus on its core banking business locally and overseas, the statement said.
ADFG is a privately owned alternative investment firm based in Abu Dhabi, capital of the UAE.
FGFS was founded in 2001 and deals in local equities on the Abu Dhabi and Dubai stock markets.
"FGFS customers will continue to receive high-quality market advice and servicesprovided by an unchanged team of brokers and dedicated financial services professionals," the statement said.
FGB had shareholder equity of AED34.1 billion as of December 31, 2014 making it one of the largest banks in the UAE. Internationally, FGB has branches in Singapore and Qatar, representative offices in India, Hong Kong, Seoul and London and a subsidiary in Libya.