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UAE's biggest lender First Abu Dhabi Bank (FAB) has sold a 60 percent stake in its payments firm, Magnati, to Canada's Brookfield Business Partners.
The deal implies a valuation of up to $1.15 billion for Magnati, the lender said in a bourse filing to Abu Dhabi Securities Exchange where its shares trade. According to Zawya calculations the sale would net FAB around $690 million.
FAB will continue to hold 40 percent stake in Magnati upon completion of the transaction, which is subject to regulatory approvals.
It said the proceeds from the sale will be used to support its growth and transformation plans.
FAB launched Magnati in April last year as a fully owned affiliate.
Brookfield Business Partners is a business services and industrials company focused on owning and operating high-quality businesses.
Morgan Stanley & Co. International plc is acting as sole financial adviser to FAB, while Freshfields Bruckhaus Deringer LLP acted as legal adviser to FAB on the transaction.
(Reporting by Brinda Darasha; editing by Seban Scaria)
