Abu Dhabi’s first bank began selling a stake in business of Magnati payments, in a potential deal that could value the unit at nearly $ 1 billion.
The UAE bank is working with Morgan Stanley to promote the deal with potential investors, according to informed sources who spoke to Bloomberg. Sources said the sale could attract interest from financial sector firms and direct investment firms.
According to Bloomberg sources, First Abu Dhabi Bank is considering keeping a stake in Moguls after reaching an agreement with any party, and sources confirmed that the discussions are in course and no final decisions have been made in on the quota foreseen for the exit.
First Abu Dhabi Bank, the largest bank in the UAE, completed its payment business to a wholly owned subsidiary in April.
Any sale is bound to add to a flurry of global, guided payments deals in it starts with banks trying to offload transactions as they struggle to compete with specialized service providers.
In 2015, the companies of private equity Warburg Pincus and General Atlantic have bought a stake in Network International Holdings, a payments company backed by Emirates NBD, before listing the company in London less than four years later.
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