Abu Dhabi Commercial Bank, the UAE’s third-largest lender by assets, said it has received a binding offer for a majority stake acquisition in Abu Dhabi Commercial Properties (ADCP), the lender’s wholly owned property management services subsidiary.
The bank has received the offer from Nine Yards Plus Holding, a subsidiary of Abu Dhabi-based Ethmar International Holding (EIH), the company said on Wednesday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
ADCB, which will retain a 20 per cent stake in ADCP, said it is expecting to receive Dh400 million ($108.90 million) after the sale of the majority stake to Nine Yards Plus Holding.
However, the potential partnership is subject to the “transaction agreements, approvals and any relevant closing conditions,” and is expected to be completed during the fourth quarter of this year.
The transaction aligns with ADCB’s strategy to focus on “growth and diversity building on strategic partnerships” with the UAE companies.
The potential acquisition will position ADCP on an “accelerated growth path”, ADCB said in a statement. ADCP will retain its separate corporate legal status and brand, ensuring continuity of its processes, operations and services, it added.
Established in January 2006, ADCP is a property management company. Following the merger in 2019, Union National Bank’s Al Wifaq Properties and the real estate division of Al Hilal Bank were successfully integrated into ADCP, enhancing its customer reach and offering a broader portfolio.
Nine Yards is the real estate vertical of EIH that operates in nine different sectors ranging from property, energy, technology, alternative investments, hospitality, healthcare, travel and tourism, financial services, automotive and trading.
ADCB reported a 22 per cent increase in its third-quarter net profit to Dh1.94 billion. Total net interest income – what banks earn from their lending activities minus the interest they pay to depositors – surged 28.6 per cent to Dh2.65 billion, while net income from Islamic financing and investing products rose 6.2 per cent to Dh531 million.
The bank had grown its assets by 7.8 per cent to nearly Dh537 billion at the end of September.
This Article is originally published on: https://www.thenationalnews.com/
