FGB sells 45% shares in brokerage unit

FGB has signed share purchase agreement with Integrated Financial Group, or IFG, a subsidiary of Abu Dhabi Financial Group, to sell its stake in brokerage firm First Gulf Financial Services, or FGFS.

By Haseeb Haider - Principal Correspondent, Abu Dhabi

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Published: Thu 16 Oct 2014, 11:55 PM

Last updated: Tue 7 Apr 2015, 10:43 PM

Abu Dhabi: First Gulf Bank has sold 45 per cent shares of its brokerage unit in order to focus on its core banking business.

FGB has signed share purchase agreement with Integrated Financial Group, or IFG, a subsidiary of Abu Dhabi Financial Group, to sell its stake in brokerage firm First Gulf Financial Services, or FGFS.

The agreement, which was signed on October 2, paves the way for the sell-out. The transaction will be completed in the coming period, subject to all regulatory approvals. The agreement follows a plan, which FGB has recently undertaken to increase its focus on its core banking activities locally and overseas.

Founded in 2001, FGFS deals in local equities on the Abu Dhabi and Dubai stock markets. FGFS offers a wide range of services to investors which include trading in local shares, and providing customers with relevant market information.

The transaction will have no impact on FGFS customers who will continue to benefit from the same high-quality advice and depth of services provided by an unchanged team of brokers and dedicated financial services professionals.

Andre Sayegh, chief executive officer of FGB, said: “We have made significant changes in our internal structure, allowing us to offer products to our diverse customer groups which genuinely address their unique financial requirements.”

“Taking into account our current operational plan and the future objectives we have set for the business, we have decided to sell our 45 per cent ownership in First Gulf Financial Services to support our efforts in enhancing FGB’s core banking activities both in the domestic market as well as overseas.”

Jassim Alseddiqi of Abu Dhabi Financial Group added: “The acquisition in First Gulf Financial Services represents a seminal moment in the development of IFG. FGFS is a well-established brokerage firm in the UAE with a strong reputation and client base. IFG already has an extensive understanding of the UAE equity brokerage markets, which are presently thriving in the current economic climate, and the completion of the transaction is indicative of our expansion philosophy.”

— haseeb@khaleejtimes.com



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