DUBAI, March 11 (Reuters) – Emirates NBD plans to raise its capital by 7.35 billion dirhams ($ 2 billion) by issuing new shares as Dubai’s largest bank prepares to bid for Deniz Turki Bank.
The bank announced that the general assembly meeting on the 27th of this month will discuss an increase in the bank’s capital by AED 7.35 billion through the issue of new shares with a nominal value of AED 1, including a discount of at least 10% of the market price.
A cash dividend of 40% will be discussed at a total value of AED 2.2 billion and a 5% to 20% foreign ownership ratio will be raised.
The bank will discuss the proposed capital increase from 5.5 billion dirhams to 7.35 billion dirhams by issuing new shares at its next meeting on 27, and analysts are likely to be directed to finance a planned acquisition of Deniz Turki Bank.
Shaabir Malik, a banking analyst at investment bank Hermes, said the capital increase was aimed at financing a deal to buy Spearbank’s stake in Turkey’s Deniz Bank.
“The value of the Turkish bank is between $ 3.5 billion and $ 4 billion,” he said.
Mohammed Ali Yasin, Chief Executive Officer of Abu-Dhabi Securities Company, said that the increase in the share of foreigners in the capital of Emirates NBD comes in the light of government ownership of 55% and reflects the rise in the performance of the stock today. He said that raising the capital of Emirates NBD would be a step in the right direction and would be reflected in the interest of shareholders and shareholders in the end.