Singapore state fund Temasek Holdings and Abu Dhabi fund Mubadala Development Co. are among the shareholders looking to sell their stakes in U.A.E. consumer finance company Dunia, two media reports said.
Bloomberg which first reported the development citing sources, said Dunia’s shareholders, which also include ‘Abu Dhabi-listed Waha Capital PJSC and family-owned Arenco Group, were seeking to hire a financial adviser for the sale shortly’, and the report also added that a ‘full sale of the consumer finance company may fetch about US$500 million’. But the same report also said that formal process (for the sale) was yet to begin’.
Dunia, that is is run by former Citigroup banker Rajeev Kakar, who is also regional CEO of the Central Eastern Europe, Middle East and Africa region for Fullerton Financial, may also attract a bidding war from banks seeking to tap high-yielding individual customers, and another report quoting analysts said that the possibilities include ‘one shareholder buying out the others, or the company being sold or even sold to the public in an initial public offering’.
While Mubadala has a 31 per cent holding in Dunia, and Temasek through its wholly owned subsidiary Fullerton Financial Holdings owns about 40 per cent, and jointly these two funds have a controlling stake.
The consumer finance company that was launched in 2008 has about 164,000 customers, and it had registered a net profit of Dh201 million in 2014.