Bahrain’s GFH in merger talks with Shuaa Capital

Bahraini investment firm GFH Financial Group is in talks with Dubai-based Shuaa Capital and others about a potential merger.

In a statement, the Bahraini firm said the discussions were, “in line with GFH’s new strategy to acquire financial institutions and strategic assets”. However it added that “no final decision has been reached as yet”.

GFH had $5.5 billion of assets and funds under management at the end of last year, according to its full-year financial statement. The sum is spread across its real estate, commercial banking, private equity and asset management divisions.

Shuaa Capital reported net assets of 826 million dirhams ($225 million) at the end of last year. It made an loss of 133 million dirhams in 2016 despite a five-fold rise in profits at its asset management division.

Abu Dhabi Financial Group bought a 48% stake in Shuaa Capital in 2016, making it the largest shareholder. The Abu Dhabi conglomerate also owns 10% of GFH.

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