Dubai to work with Citigroup on sale of Bank Muscat stake
Dubai Financial Group LLC is working with Citigroup Inc. to find a buyer for its stake in Omani lender Bank Muscat SAOG after the sale was triggered by an agreement with creditors, according to people familiar with the matter. The 12% stake is worth about USD300mn based on current market prices, according to data compiled by Bloomberg. It’s drawing interest from local pension funds and family offices in Oman, the people said, asking not to be identified as the information is private. No final decision has been made, and an agreement hasn’t been reached with any of the parties, according to the people. As part of the agreement with its creditor Natixis SA, Dubai Financial could be compelled to sell its holdings in Bank Muscat and EFG-Hermes Holding SAE if it hadn’t repaid debts by the end of March. Natixis bought the EFG-Hermes stake itself last month. (Bloomberg) Bank Muscat: OMR0.388 as of 7 September, Rating: Buy, FV: OMR0.490 per share, MCap: USD2,467mn, BKMB OM / BMAO.OM
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