Shuaa Capital to exit non-core units, sells 2 units

Financial services group Shuaa Capital on Sunday announced that it would exit from non-core business and sell two of its units to Abu Dhabi-listed International Holdings Company (IHC).
The company said in a statement to Dubai Financial Market that it would sell Shuaa Securities Brokerage and market-making businesses in the UAE to IHR RSC Ltd, a subsidiary of IHC, pending regulatory approval.
"Under the terms of the all-cash deal, IHC will acquire the operations of both businesses, which currently function as stand-alone business units within Shuaa. This sale is part of the strategy of the combined entity to exit non-core businesses and focus on asset management and investment banking," the Dubai-listed firm said in the statement.
A statement sent by IHC to Abu Dhabi Securities Exchange also said that its Board of Directors had approved acquisition of two subsidiaries of Shuaa Capital that are engaged in financial brokerage in the UAE. However, both the companies didn't disclose the value of the deal.
Shuaa Capital, which recently completed a transformational merger with Abu Dhabi Financial Group (ADFG), announced the issuance and placement of a $135 million dollar-denominated five-year Sukuk for The First Group (TFG), one of the UAE's most respected property and hospitality specialists.
The investment bank acted as the sole arranger and underwriter for the Sukuk which is also listed on the London Stock Exchange. The second quarter of 2019 saw Shuaa registering Dh31.6 million loss as compared to Dh14.6 million profits in Q2 2018. While the first-half of 2019 saw a loss of Dh56.5 million compared to a profit of Dh26.3 million in H1 2018 reflecting the one-off transaction costs relating to the combination with ADFG as well as final provisions of Dh13.5 million towards exposure to legacy investments. - waheedabbas@khaleejtimes.com