Dubai acquires $1bn stake in StanChart
Dubai acquired a stake of around 2.7 per cent in Standard Chartered Plc for $1 billion, saying it was attracted to the London-based bank’s strong focus on Asia and strategy of acquisition-led growth.
The Gulf emirate took the stake through its investment arm Istithmar, one of several vehicles it has used to make high-profile acquisitions around the world — from New York real estate to British ports operator P&O.
Istithmar completed a leveraged structured investment of around $1 billion, a company statement said without giving details of the transaction. The stake would be equal to around 2.7 per cent of bank’s stock, it said.
“Istithmar supports the incumbent management team at Standard Chartered and fully endorses their strategic vision,” Sultan Ahmed Bin Sulayem, executive chairman of Istithmar said.
Standard Chartered said it welcomed Istithmar “as a long-term investor.” It added in a statement: “This is an endorsement by a widely respected financial investment company of the Bank’s strategy of growth in Asia, Africa and the Middle East.”
Bin Sulayem told Reuters Istithmar was attracted to Standard Chartered’s strategy of making acquisitions and its focus on emerging markets. Asia, the Middle East and Africa account for 90 per cent of StanChart’s revenue.
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