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DUBAI, May 5 (Reuters) – Mubadala Investment Co, Abu Dhabi’s second-largest sovereign wealth fund, has sold its 7.6% stake in Abu Dhabi Islamic Bank (ADIB.AD) They said in a joint statement on Friday that they would buy a unit of investment firm National Holding.
Already ADIB’s largest shareholder, the strategic investment arm of Abu Dhabi-based National Holdings, Emirates International Investment Company (EIIC), acquired Mubadala’s stake to give it a 47% stake in ADIB.
The deal demonstrates “strong confidence in the long-term growth prospects of the UAE’s second-largest Islamic bank,” the statement said.
This is “in line with Mubadala’s strategy to create long-term value by optimizing its global portfolio across multiple industries,” the statement said, adding that the state investor remains committed to the UAE’s banking sector.
ADIB’s first-quarter net profit more than halved year-on-year to AED1.1 billion (US$300 million). Its shares have risen more than 16% so far this year, according to Refinitiv data.
Its market capitalization is about $10.3 billion, according to Refinitiv data. At ADIB’s current share price, Mubadala’s 7.6 percent stake is worth more than $780 million, according to Reuters calculations.
Mubadala and EIIC did not disclose the value of the deal in a statement.
($1 = 3.6719 UAE Dirhams)
Reporting by Yousef Saba Editing by Mark Potter
Our standards: Thomson Reuters Trust Principles.
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