First Gulf Bank (FGB), UAE’s second largest bank by market capitalization, has acquired a consumer financial services firm from debt-laden investment firm Dubai Group for 601m dirhams ($163.6m), it said on Sunday.
The acquisition of Dubai First, which specializes in liability and credit card products, helps FGB expand its customer base in the UAE, the lender said in a statement.
The sale is part of Dubai Group’s efforts to address its debt as it restructures $10 billion of liabilities with creditors, Fadel al-Ali, the firm’s chief executive said in the statement.
A unit of Dubai Holding, the investment arm of Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum, Dubai Group has a portfolio of mainly financial services assets bought during the boom years of the mid-2000s, but which have plunged in value since the 2008 global financial crisis.
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