ABU DHABI/DUBAI, Sept 27 (Reuters) - Qatar’s third-largest lender, Commercial Bank, is in talks with the UAE’s Tabarak Investment to sell its 40 percent stake in Abu Dhabi-listed United Arab Bank, sources told Reuters on Wednesday.
Commercial Bank on Tuesday said it entered into a 90-day period of exclusivity with a “third party purchaser” it did not name to negotiate the terms of a deal, according to a statement on the Qatar bourse
Privately-owned Tabarak is in early stage discussions with CBQ, the sources said, declining to be named as the matter is not yet public.
“They even have a price commitment pending that due diligence,” said one of the sources.
Tabarak declined to comment. Qatar’s Commercial Bank said in an email to Reuters that the bank received interest from a number of potential buyers for UAB’s shares and have accepted a conditional offer from one.
“Their identity is confidential as per the terms of our agreement,” CBQ said.
Commercial Bank’s stake in United Arab Bank is worth around $217 million, according to Thomson Reuters data.
The move is the latest sign of Qatari companies weighing an exit from the United Arab Emirates, which is part of a group of Arab countries that had cut diplomatic and transport ties with Doha on June 5.
Tabarak, which calls itself a private equity vehicle has a stake in Dubai’s Drake & Scull International and is invested in sectors such as education, industry, logistics and healthcare. (Reporting by Stanley Carvalho & Tom Arnold, editing by Saeed Azhar and Louise Heavens)