UAE-based Shuaa Capital has agreed to sell its securities brokerage and market-making businesses in the UAE to IHC RSC Ltd, a subsidiary of International Holdings Company (IHC).
The Abu Dhabi Securities Exchange-listed is an investment holding company with diverse interest.
Under the terms of the all-cash deal – for which regulatory approvals are still pending – IHC will acquire the operations of both businesses, which are currently standalone units within Shuaa, according to a statement.
For Shuaa – which recent completed a merger with Abu Dhabi Financial Group - the sale marks part of a strategy in which the combined entity will exit non-core businesses to instead focus solely on asset management and investment banking.
In August, ahead of the merger, Shuaa reported a net loss of AED56.5 million ($15.3 million) in the first half of 2019 due to one-off costs related to its merger.
The company's net loss in H1 compared to a profit of AED26.3 million in the year-earlier period.
Fawad Tariq-Khan, CEO of Shuaa Capital, said: "Shuaa’s final set of quarterly earnings reflect the completion of expenses and provisions relating to the merger as well as legacy investments. More importantly, our operating lines continue to grow in revenue and these will continue to serve as crucial elements for the new and enlarged entity well into the future.
"Following the completion of the merger, the various teams at Shuaa and ADFG are now investing considerable joint efforts building a solid long-term road map for this newly created regional financial powerhouse."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.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.