FGB, one of the leading banks in the UAE, has signed a Share Purchase Agreement (SPA) with Integrated Financial Group (IFG), a subsidiary of Abu Dhabi Financial Group (ADFG), for the sale of the bank’s 45% stake in its brokerage firm First Gulf Financial Services (FGFS). The agreement was signed on October 2nd, 2014, and 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.

Commenting on the agreement, André Sayegh, CEO of FGB, said: “FGB recently unveiled a new brand proposition which puts our customers ‘First’ and positions them as the focus of all our activities. 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% 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 of a 45% stake 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 alreadyhas 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. We look forward to growing the business over the coming years while continuing to deliver the highest standard of service to every client.”

 

We accept Guest Posts