FAB sells 60% in its payment unit Magnati to Canada’s Brookfield

FAB sells 60% in its payment unit Magnati to Canada’s Brookfield

First Abu Dhabi Bank (FAB), the UAE’s largest lender by assets, has signed an agreement to sell 60 percent of its stake in the payments business, Magnati, to Canada-based business services and industrials company, Brookfield Business Partners.

The deal with Brookfield results in an implied valuation of Magnati of up to $1.15 billion. This transaction follows the completion of the carve-out of Magnati announced in 2021. FAB will retain a 40 percent stake in Magnati post transaction and will continue its partnership via a long-term relationship agreement.

The carve-out of the payments business is part of FAB’s digital transformation process and was designed to enhance FAB’s position in the payments sector and unlock growth opportunities in new geographies and client segments.

The transaction is subject to customary closing conditions and regulatory approvals. Upon completion, proceeds from the sale will be used to support FAB’s growth and transformation plans.

Brookfield Business Partners is focused on owning and operating high-quality businesses with a track record of partnering with high-quality businesses and creating long-term value, representing a significant opportunity for both Magnati and the regional payments industry.

Magnati is the market leader for government solutions in the UAE and amongst the top two players across direct acquiring, prepaid