An affiliate of Prism Group AG and Abu Dhabi’s Royal Strategic Partners will pay the nominal consideration and provide working capital to the business and operations of the financial services company, according to a statement Thursday. Its foreign-exchange businesses and payment-technology operations include one of the UAE’s largest foreign currency firms, UAE Exchange.
The takeover helps draw a line under a major accounting scandal that caused the collapse of two UAE firms this year. Finablr revealed in April about $1 billion of debt hidden from its board that may have been used for purposes outside the company, compounding a scandal that pushed its sister firm NMC Health Plc into administration. When Finablr faced potential insolvency, the UAE’s central bank stepped in and oversaw the operations of UAE Exchange, which serves a key role in helping foreign workers send money home.
The consortium could end up paying more -- as much as $190 million -- if they succeed in recovering funds from third parties that relate to the fraud, according to the statement.
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