Dubai: UAE-based Al Ramz Corporation Investment & Development said on Thursday that it acquired the market-making business of Shuaa Capital for an undisclosed amount.
The deal will see all staff and market-making activities transferred to Al Ramz, the company said in a statement.
“The sale of the equities market-making business to Al Ramz is in line with our post-merger strategy to realign efforts on Shuaa’s capital-efficient business and exit non-core businesses so we can further grow and expand the group’s asset management and investment banking platform,” said Mustafa Kheriba, deputy chief executive officer and group head of asset management of Shuaa.
Shuaa has been looking to sell its market-making business and it announced in November that a deal to divest the unit to IHC RSC Ltd, a subsidiary of International Holdings Company, had collapsed.
“Market-making is a core business in our strategy which we continue to develop and grow,” said Mohammad Al Mortada Al Dandashi, managing director of Al Ramz Corporation. “For over two decades now, Al Ramz has played an integral role in developing the UAE markets, contributing to the market’s liquidity, efficiency and appeal to investors.”
Founded in 1998, Al Ramz is a public joint-stock company listed on the Dubai Financial Market and regulated by the UAE Securities and Commodities Authority and the Dubai Financial Services Authority. Dubai-based financial services provider Shuaa recently completed a merger with Abu Dhabi Financial Group.
Shuaa Capital disclosed in November that it had returned to profit following its merger with ADFG, a deal which was completed in August. Net income for the three months ended September 30, 2019, was Dh21.8 million, helped by a Dh31.2 million contribution from ADFG.
For Shuaa Capital, asset management and investment banking contributed almost 99 per cent of the revenue in the third quarter of 2019, with the market-making business contributing the rest.
Source - Gulf News