Deutsche Bank is planning to sell its stake in the embattled Dubai-based private equity firm Abraaj, according to news reports.
Citing two sources familiar with the matter, Reuters said that while Deutsche Bank has been considering the move for some time, it has sought to accelerate the process in the wake of Abraaj’s ongoing dispute with investors.
Deutsche has an 8.8 stake in Abraaj, which it considers a non-core asset, according to the bank’s most recent report.
Additionally, anonymous sources cited by Reuters noted that the sale noted that is has become more urgent as the bank continues a restructuring process which has recently led it to announce that it is cutting 7,000 jobs.
“There was never an active pitching process before, maybe they are regretting it now. Any sale now will be at a big discount,” said one Reuters’ sources.
When contacted by Arabian Business, Deutsche Bank declined to comment.
Abraaj is currently embroiled in disputes with investors over misuse of funds. Two separate examinations into Abraaj’s misue of money found potential irregularities in its $1 billion healthcare fund as well as a number of other investment vehicles.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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