aabar considers writedown of 19 billion
Saturday 15 February 2025
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Aabar considers write-down of $1.9 billion

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Aabar considers write-down of $1.9 billion

Dubai - Arabstoday

Abu Dhabi fund Aabar is considering a write-down of its $1.9 billion purchase of a 25-per cent stake in Malaysia’s RHB Capital, a source said, after the deal’s rich pricing helped scupper long-awaited consolidation in Malaysia’s banking sector.Aabar agreed to pay 10.80 ringgit per share in June for Abu Dhabi Commercial Bank’s quarter stake in RHB, valuing Malaysia’s fifth largest lender at around $7.2 billion, or 2.25 times its book value. Malaysia’s two largest banks, Maybank and CIMB Group, which had been planning a full takeover of RHB, subsequently pulled out of the deal citing the high price paid by Aabar. Aabar, the largest single stake owner in both Daimler and commodities giant Glencore, has internally discussed valuing the deal lower to encourage Maybank and CIMB to come back with an offer for RHB, a banking source with direct knowledge of the matter said. The fund would then likely end up with a stake in a bigger bank with a stronger valuation. “As long-term investors, it makes sense for Aabar to be part of a larger entity which has a higher valuation than RHB, plus a lowered deal will also make a lot of people in Malaysia happy,” the source said, declining to be identified as talks are not public. ADCB would still get the full $1.91 billion payment and Aabar would likely book a paper loss for the investment, the source said. Aabar may revalue the asset at 1.7-1.8 times book value, the source said, meaning Aabar would have to write down the value of its holding by as much as 24 per cent, or $450 million.Aabar did not respond to repeated requests for comment via phone and email, while ADCB declined to comment.A home-grown takeover of RHB would have been a big step for Malaysia’s banking sector where an earlier round of mergers in 1998 cut the number of lenders to 10 from 54, and could spark further deals in the region. “Valuations are reasonable at 1.7-1.8 times book,” a Malaysian analyst told Reuters. “If you look at the other smaller banks, say Alliance Financial, they are trading between 1.5 to 1.7 times book.”The analyst, who cannot be identified as he was not authorised to speak to the media, said a write-down by Aabar would send a clear invitation to Maybank and CIMB to come back to the table after its earlier pricing gaffe. From / Gulf Today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

aabar considers writedown of 19 billion aabar considers writedown of 19 billion

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

aabar considers writedown of 19 billion aabar considers writedown of 19 billion

 



GMT 06:32 2017 Thursday ,23 March

Morocco Fassi’s

GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 05:06 2024 Tuesday ,06 February

New hunt for flight MH370 gets under way

GMT 05:04 2024 Tuesday ,06 February

Skincare PR Performance Full Year 2017

GMT 17:05 2016 Wednesday ,21 September

Top steelmakers to merge as market struggles with glut

GMT 12:58 2017 Sunday ,13 August

'Locked and loaded' if N. Korea acts 'unwisely'

GMT 21:02 2017 Tuesday ,03 October

Yemen condemns terrorist blast in Bahrain

GMT 00:34 2017 Thursday ,23 March

Expect unstable weather in UAE from Thursday

GMT 13:36 2017 Wednesday ,13 September

Apple lays claim to smartphone future

GMT 23:31 2017 Wednesday ,26 July

Trump set to unveil $10 bn Foxconn deal

GMT 20:17 2013 Thursday ,02 May

Nancy Ajram records new songs while in Egypt

GMT 18:34 2011 Sunday ,17 July

UK media ignores Murdoch role in Iraq war

GMT 15:22 2012 Saturday ,13 October

White table in a curved design

GMT 19:20 2013 Sunday ,10 February

World\'s largest crocodile dies in Philippines
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice