Block trading of 38.8 million shares fuels takeover speculations for Ajman Bank (By IFN)

Block trading of 38.8 million shares fuels takeover speculations for Ajman Bank

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UAE: Government-backed Ajman Bank, which has seen strong market performance since the beginning of the year might just be the subject of a possible takeover, as speculations arise following a 38.8 million share purchase by an unidentified buyer yesterday. The purchase corresponds to a 3.8% stake of the bank’s share capital. Ajman Bank was also subject to earlier takeover speculations in 2012. However, in November last year, the bank issued a statement dismissing the rumors, stating that it was unfounded and that the bank was neither seeking investments nor a financial partner to oversee its strategic plan. Ajman Bank has not issued any statements with regards to the 4% stake sale, which has raised eyebrows among some players, who have demanded more transparency and a full disclosure of the transaction. There has been a handful of M&As throughout the Gulf region this year, beginning with Dubai Islamic Bank’s acquisition of mortgage provider Tamweel, as well as Gulf Finance House’s (GFH) 10% stake sale of Leeds United Football Club to Bahrain-based International Investment Bank. GFH is currently reviewing offers from other firms for a stake in the football club. QInvest is also currently awaiting regulatory approval from the Egyptian Financial Supervisory Authority as it looks to acquire a 60% share in Egypt-based investment bank EFG-Hermes. Ajman Bank is currently 25% owned by the government of Ajman and is supported by leading financial institutions and private individuals from the UAE, according to its website. The bank also took an initial public offering of 55% of its equity to raise capital to fund its roll-out strategy in 2008; with reports stating that the IPO was 85 times oversubscribed.