The acquisition would doubling its credit card business and significantly improving its market share to become one of the top three credit card players in the second largest Arab economy besides creating one of the largest mass affluent businesses.
“This acquisition will deliver long-term value to all stakeholders, Eraiqat said.
He said that the total cash consideration is equal to the net asset value of UAE RBS retail banking business at completion plus a premium of Dh169 million ($ 46 million).
“As at December 31, 2009, the net assets of the business were approximately Dh200 million ($ 54 million),” he said.
For ADCB, this amounted to approximately 1.59 multiples of book value. The transaction is subject to regulatory approval and is expected to complete in fourth quarter of this year.
Eraiqat described the deal an ‘historic occasion’ in the UAE banking industry as a local bank has acquired the business of a multi-national bank for the first time.
ADCB has 49 branches, 175 ATMs and over 340,000 retail customers. The takeover of retail business would further enhance bank’s franchise by leveraging RBS’s established local retail banking presence with an addition of over 250,000 customers, 51 ATMs, three new branches and two customer service centres along with a call centre facility based in Dubai.
