UAE bank sells its shares in First National Bank

'Invest Bank' prepares to launch local operations

UAE-based Invest Bank has sold its stake in First National Bank (FNB) to start its own operations locally. A shareholder since 2006, Invest Bank had held the largest single equity in FNB, amounting to around 16 percent of total shares.

Half of Invest Bank’s 2.4 million shares were bought by current shareholders, while the other half were bought by outsiders.

A source close to the deal said Invest Bank sold its rights in FNB after it acquired a license from the Central Bank to open a branch of its own in the country. “The law prohibits a bank from being a board member in one bank and at the same time holding a controlling interest in a competitor institution,” the source said. Invest Bank, chaired by Abdallah Omran Tayram, has already started preparing to open its first branch, which will be located behind the Riviera Hotel.

FNB’s capital comprises around 13.2 million shares, of which 94 percent are held by 14 shareholders. Following the recent transaction, FNB’s largest single stake is now held by its Chairman, Rami El Nimer, who owns 15 percent of shares. Salah Osseiran, owner of Business Projects Company (BPC), holds a combined total 15 percent of shares, both individually and through his firm. Kuwaiti investor Khaled Abdallah Al Sagar, member of the Al Sagar Group, owns another 13 percent.

Promotion des Investissements, owned by Syrian-Lebanese businessman Maan Lababidi, holds 12 percent of FNB. The private equity fund EuroMena II, a member of Capital Trust Group, holds seven percent.

FNB’s assets reached $3.3 billion at end-September 2012.