05 April 2011
Abu Dhabi, 5 April 2011: The Board of Abu Dhabi Commercial Bank (ADCB) announced today that it has approved the appointment of Goldman Sachs and Bank of America Merrill Lynch as advisors to ADCB in relation to its 25% equity stake in RHB Capital Berhad (RHB) Malaysia.
“RHB is a key strategic asset for ADCB as evidenced by its contribution to our profitability and the capital we have allocated to this investment. We are pleased with the business and financial performance of RHB to date, are supportive of the management team in place and continue to have strong partnerships with all relevant stake-holders” said Mr. Ala’a Eraiqat, ADCB’s Chief Executive Officer. “This announcement is consistent with ADCB’s market-leading commitment to transparency and international best practice”, he said further.
“ADCB has a pro-active approach to managing all our portfolio investments, including RHB” said Mr. Arul Kandasamy, Head of Investment Banking Group at ADCB “We have a clearly articulated strategy to maximize value for our shareholders and to optimize use of capital. Given the significance of RHB to ADCB, we have decided to appoint advisors with ‘best in class’ expertise to explore all options available to ADCB in relation to this investment”, he said further.
The advisory engagement is structured as a 2 phase process and is expected to deliver an outcome by Q3 2011. Any action taken by ADCB as a result of the advice received will be subject to further internal deliberations and all requisite approvals. As part of this process, ADCB management are committed to assess and appropriately prepare in advance for any relevant impact to business strategy, profitability and capital adequacy requirements.
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