DOHA: Ahli United Bank BSC (AUB) yesterday announced the completion of the sale of its 29.4 percent stake in Ahli Bank Qatar (ABQ) to the Qatar Foundation at a price of QR60 per share and for a total consideration of $615.9m, generating a net exceptional profit of $212.9m.
This represents a valuation of 2.2 x book value and a 15.5 x profit/equity multiplier based on ABQ’s net profit for 2012.
As a result of the sale, AUB’s technical and management services agreement with ABQ has been modified to provide only selective advisory services for a maximum period of one year. In coordination with ABQ, AUB directors have resigned their ABQ board memberships in line with the cessation of AUB’s responsibilities for ABQ’s management or performance going forward.
The decision to sell our stake in ABQ was triggered by our inability to maintain our minority shareholding above the minimum levels as per the investment policy. This sale does not represent a reversal of our regional growth by investment and acquisition strategy and is solely driven by the specific legal constraints linked to this investment.
AUB will continue to seek attractive opportunities to develop its banking franchise in the region and to enhance its shareholder value, a press note issued by AUB noted.
The Peninsula
