ADFG, Arqaam Capital among bidders for Shuaa stake

Abu Dhabi Financial Group (ADFG), Al Mal Capital and Arqaam Capital are among the bidders for Dubai Group's 48.4 percent stake in investment firm Shuaa Capital, Reuters reported, citing unnamed sources familiar with the matter.

Dubai Group, a subsidiary of Dubai Holding, is said to be in the process of selling its stake in Shuaa, in order to raise funds to meet repayments under its $10 billion debt restructuring.

Dubai Group's stake is worth around AED 334.5 million, based on Tuesday's closing share price of AED 0.65, according to news agency’s calculations.

If Arqaam Capital’s bid is successful, it could seek a reverse takeover, a UAE-based banker said.

Arqaam had planned a market flotation last year and hired Rothschild as an advisor.

Last week, Shuaa Capital said in a bourse statement that it could not comment on the reports of a potential stake sale as “such a transaction would be negotiated and consummated at the shareholder level.”