Al Habtoor Group, the Dubai-based hotels owner, plans to increase its holding in UK bank Barclays to as much as 2.5 percent.Chairman Khalaf Al Habtoor told news agency Bloomberg in a telephone call that UK banks will bring better returns than real estate.
”We have a good stake in the bank and we intend to raise it to ”about 2 percent or 2.5 percent”. The company currently has a 1.4 percent stake.
”The price is very attractive” and ”we have confidence in the bank’s strength and the UK’s regulatory system,” he said.
Al Habtoor Group has set aside as much as $400 million for investments and acquisitions this year and may borrow to add to the amount, Al Habtoor added.
Barclays raised GBP5.3 billion last October and avoided a UK government bailout.
The Abu Dhabi government invested up to GBP4.75 billion at the time, including GBP1.5 billion on warrants exercisable at 197 pence per share.
Since then the government, through its IPIC investment arm, has cut its stake substantially.
But Khadem Al Qubaisi, managing director of IPIC, said at the time of the sale earlier this month, which realised a GBP1.46 billion profit: ”The emirate of Abu Dhabi intends to maintain a close commercial and strategic relationship with Barclays in the future.
”The decision to dispose of some of its interests in Barclays reflects the focus of IPIC’s long-term investment strategy on hydrocarbon-related opportunities.”
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