First Abu Dhabi Bank, the UAE’s largest lender by assets, has signed an agreement to sell a 60 per cent stake in its payments business Magnati to New York-listed Brookfield Business Partners, valuing the company at up to $1.15 billion.
The transaction comes after Magnati was carved out into a fully-owned subsidiary in April last year. FAB will retain a 40 per cent stake in Magnati and continue its partnership with the company through a long-term relationship agreement, the lender said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
“FAB’s expertise and relationships, coupled with Brookfield’s regional and global presence, will provide a platform for Magnati to attract new regional and global partners while setting a new standard for innovation and delivery in the payments industry,” the bank said.
Demand for digital payments has soared after the coronavirus pandemic as more people use online banking services to transfer money and pay for e-commerce transactions.
Globally, digital payments are expected to grow to $8.26 trillion by 2024, from $4.4tn in 2020, according to Statista.
Listed on the New York and Toronto stock exchanges, Brookfield Business Partners is a subsidiary of Brookfield Asset Management which has $690bn of assets under management globally.
“This announcement marks an important milestone and is the result of long-term planning to seek strategic partnerships to drive growth within the payments sector,” Hana Al Rostamani, group chief executive of FAB said. “Our partnership agreement with Brookfield will accelerate Magnati’s journey in a fast-paced and dynamic industry, creating broader value for all stakeholders.”
The transaction is subject to final regulatory clearance from the Central Bank of the UAE. Proceeds from the sale will be used to support FAB’s growth and transformation plans, the lender said.
“The payments industry is experiencing unprecedented growth, creating new opportunities for agile, pioneering payment platforms,” said Jad Ellawn, managing director at Brookfield. “Magnati is well placed to benefit from this shift.”
Magnati will tap into the largest payment trends in the region, including the rise of e-commerce and digital transformation, the bank said.
FAB reported a 19 per cent jump in its 2021 profit on the back of higher net fee and commission income and gains on investments.
Country-size land deals
US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:
Louisiana Purchase
If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.
Florida Purchase Treaty
The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty.
Alaska purchase
America's spending spree continued in 1867 when it acquired 1,518,800 km2 of Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".
The Philippines
At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million.
US Virgin Islands
It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.
Gwadar
The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees.
The specs
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Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
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TERMINAL HIGH ALTITUDE AREA DEFENCE (THAAD)
What is THAAD?
It is considered to be the US's most superior missile defence system.
Production:
It was created in 2008.
Speed:
THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.
Abilities:
THAAD is designed to take out ballistic missiles as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".
Purpose:
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Range:
THAAD can target projectiles inside and outside the Earth's atmosphere, at an altitude of 150 kilometres above the Earth's surface.
Creators:
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UAE and THAAD:
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