BackGulf firm buys 2.87% stake in ICICI Bank
Gulf firm buys 2.87% stake in ICICI Bank
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PTI
Dubai: Dubai International Capital (DIC), the investment arm of Dubai Holding, has bought 2.87% stake in ICICI, India’s second largest bank.
Dubai International Capital’s investment in the Indian bank follows its recent purchase of 3.12% stake in the European Aeronautic Defence and Space Company EADS, the parent company of aircraft manufacturer Airbus.
ICICI Bank had assets of $79 billion at the end of 31 March.
It raised $4.9 billion in India’s biggest share sale open to domestic and foreign investors in June.
“The investment allows DIC to become one of the leading shareholders in the company," DIC said in a statement. But, it didn’t disclose the value of its investment.
The Dubai firm may have paid $717 million for the stake acquired from the American Depository Receipts (ADR) issue open to foreign investors.
However, at today’s closing share price DIC’s stake would be worth $741.5 million.
“The strategic investment in ICICI supports the global diversification and growth mandate for DIC and its parent company, Dubai Holding," DIC chief executive officer Sameer Al Ansari said.
The Singapore government investors held about 9.7% stake in ICICI before the latest share offering and had the approval to raise their stakes substantially.
DIC aims to have assets worth $25 billion in the next two years.
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