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Tue 19 Nov 2019 01:54 PM

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Dubai's Shuaa Capital says plan to sell market-making unit fails

Buyer pulls out of deal to acquire Shuaa Capital International but to proceed with plan to buy securities brokerage

Dubai's Shuaa Capital says plan to sell market-making unit fails

Last week, Shuaa Capital announced it had returned to profit following its merger with ADFG which was completed in August.

Dubai-based Shuaa Capital has announced that plans to sell its market-making business, Shuaa Capital International, has hit an obstacle.

While a deal to sell Shuaa Securities, its securities brokerage, to IHC RSC Ltd, a subsidiary of International Holdings Company (IHC), is proceeding, the buyer has pulled out of the deal for the market-making business, a statement said.

In September, Shuaa Capital said it had agreed to sell both businesses to IHC RSC Ltd.

Under the terms of the all-cash deal, IHC was expected to acquire the operations of both businesses.

For Shuaa – which recent completed a merger with Abu Dhabi Financial Group - the sale was supposed to be part of a strategy in which the combined entity will exit non-core businesses to instead focus solely on asset management and investment banking.

Shuaa Capital did not say what it planned to do with the market-making unit.

Last week, Shuaa Capital announced it had returned to profit following its merger with ADFG which was completed in August.

Net income for the three months ended September 30 was AED21.8 million, driven by an AED31.2 million contribution from ADFG.

Results also showed a considerably enhanced balance sheet for the group following the merger, with retained earnings of AED153.8 million.

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