AUB Sells 29.4% Ahli Bank Qatar Stake to Qatar Foundation

Doha, February 05 (QNA) - Ahli United Bank BSC (AUB) Tuesday announced the completion of the sale of its 29.4% stake in Ahli Bank Qatar (ABQ) to Qatar Foundation for Education, Science and Community Development. The deal was clinched at QR 60 per share for a total consideration of US$ 615.9 Million, generating a net profit of US$ 212.9M million. 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, AUB said in a media statement today. "The decision to sell our stake in ABQ was triggered by our inability due to legal factors to maintain our minority shareholding above the minimum levels required for ABQ to qualify as a strategic core investment with associated management and reputational exposure as per the AUB Group Investments Policy," AUB said. "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," the statement added. 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 co-ordination 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 statement concluded. (QNA)