SHUAA Capital, the UAE’s premier integrated financial services firm, today announced it has entered into an agreement with Integrated Financial Group (“IFG”), towards the acquisition of Integrated Capital and Integrated Securities. The signing of the agreement follows the completion of the due-diligence process initiated in March.
The strategic acquisition, which remains subject to regulatory approvals, of two of the UAE’s most active and successful financial institutions will bring improved synergies, enhancing SHUAA Capital’s suite of products and services, and allowing it to expand its footprint.
Integrated Securities, which IFG acquired from First Gulf Bank in 2014, ranks within the top 10 by volume traded in the UAE. It brings to SHUAA over 3,000 clients and over AED 15bn shares in custody which would position SHUAA to offer one of the leading brokerage platforms in the region, and will also serve as a base for expansion.
In a brief timespan, Integrated Capital quickly grew and attained a leading position in the region’s high yield fixed income market. In 2016, it was co-lead on the $500m bond issuance by Etihad Airways Partners and was also the largest subscriber to the original $700m issuance in September 2015. Integrated Capital will combine with SHUAA’s developing capital markets business which provides access to regional and international securities on the primary and secondary markets.
These additions and enhancements to SHUAA are intended to provide a much broader range of investment solutions for existing and new clientele.
On the occasion of signing the agreement, Jassim Alseddiqi, Chairman of SHUAA Capital said: “SHUAA Capital is pleased to announce it has reached the next stage in this acquisition process. We have thoroughly considered all our strategic options and firmly believe this deal will herald a new chapter for the Group, and for the financial services landscape in the MENA region as a whole. The combination of these brands serves the interest of our shareholders, and promises to establish a new financial force. We look forward to passing the final stage by receiving green light from the respective regulators”.
Fawad Tariq-Khan, General Manager of SHUAA Capital said, “This acquisition marks a significant milestone for SHUAA Capital on its return to prominence as the region’s leading integrated financial services firm. We look forward to the many opportunities and added value that this combined entity will bring to SHUAA’s stakeholders.”