ENBD move could see foreign ownership cap lifted | GulfNews.com:
"Emirates NBD (ENBD) was up 6.5 per cent in one day last week and this was on the back of confirmed talks with Russian lender Sberbank to potentially acquire its wholly-owned Turkish unit DenizBank, which is valued as much as $4.12 billion (Dh15.13 billion) or 1.3x book value.
We were less surprised with ENBD’s move to enter the new market as the bank has always been keen on inorganic growth (they entered the Egyptian market in 2013 after buying BNP Paribas’ subsidiary), rather than returning capital to shareholders via dividend payments.
Despite great fundamentals, ENBD has traditionally traded at a 20-30 per cent valuation discount to the UAE banking sector, mainly due to the foreign ownership limit (FOL) cap at 5 per cent for the stock."
'via Blog this'
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