Commercial Bank
Dubai: Qatari’s third-biggest lender, Commercial Bank, is in talks to sell its $217m stake in Abu Dhabi-listed United Arab Bank.
The potential buyer is a UAE-based strategic investor, two sources said, without giving its name. One of the sources said Commercial Bank (CBQ) had been considering selling its 40 percent stake in United Arab Bank even before June.
“Obviously, the expansion strategy of CBQ hasn’t worked, but they’ve stabilised the ship, so the bank can sell (its stake) in the existing form,” Jaap Meijer, head of research at Arqaam Capital, said. The Qatari bank said it had entered into a 90-day period of exclusivity with a “third party purchaser” it did not name. Commercial Bank’s stake in United Arab Bank is worth around $217m, Thomson Reuters data showed.
Commercial Bank CEO Joseph Abraham told Reuters on Monday that board meetings at United Arab Bank were now held by video conference because of travel restrictions imposed by the UAE. United Arab Bank is listed in Abu Dhabi but headquartered in Sharjah.
