Abu Dhabi, Al Mal and Arqaam among Shuaa stake bidders

Abu Dhabi Financial Group, Al Mal Capital and Arqaam Capital are reportedly among the bidders for Dubai Group’s 48.4 per cent stake in Shuaa Capital.

Sources told Reuters that the three had entered bids for the stake, which is being sold to meet the Dubai Holding unit’s repayments under a $10bn debt restructuring.

Of those named, Arqaam could reportedly seek a reverse takeover, making itself public in the process, after plans last year for a market floatation failed to materialise.

ADGF is the alternative investment vehicle of the Abu Dhabi government. Al Mal is 60 per cent owned by Dubai Investments.

The Shuaa Capital stake is worth around Dhs 334.4m ($91m) based on the company’s Tuesday closing price of Dhs 0.65.

The company recently played down reports of job cuts after Reuters said it was cutting up to 15 per cent of its workforce.

Read: Shuaa Capital plays down reports of job cuts

In a bourse statement last week, the bank said a “very limited number of staff were affected by the lay-offs”, revealing it had cut six employees that were “mostly in support functions”.