Dubai: Another step has been taken to create a UAE headquartered digital payments processing giant.
This will come about by combining the businesses operated by Magnati and of Network International. These will be held under Network Project Holdings 1 Ltd., according to a statement from the Abu Dhabi bank FAB.
FAB was one of the investors along with Canada’s Brookfield that announced plans to acquire 100 per cent of Dubai-based Network International. (The latter was listed in London.)
FAB was also the founder of Magnati, headquartered in Abu Dhabi and itself a payments processing operator. Brookfield, the global investment firm, had earlier bought majority shareholding in Magnati.
“FAB announces the effectiveness of the Scheme of Arrangement pursuant to which FAB alongside Brookfield Asset Management Ltd and other co-investors are to acquire 100% of the share capital of Network International Holdings plc,” the Abu Dhabi bank said in the statement.
Once approvals are in place, FAB and Brookfield will contribute their interests in the payments platform Magnati in exchange for additional interests in Network Project Holdings 1 Limited, the entity which will hold the combined businesses of Network and Magnati.
“The combination of the Network and Magnati businesses is expected to generate opportunities that will add significant value to all stakeholders, driving innovation and growth in the payments industry,” said the statement.
How the Network-Magnati combine came about:
- In February 2022, the Canadian fund manager Brookfield confirms plans to acquire 60% in Magnati, which was set up by FAB.
- In June 2023, Brookfield announced the move to acquire Network International, in a deal valued at $2.8 billion. Network International was a listed company at the time, with its stock trading on London Stock Exchange.
More to follow...
