Wednesday, 9 March 2022

#AbuDhabi’s Magnati Looking at Expansion Opportunities, CEO Says - Bloomberg

Abu Dhabi’s Magnati Looking at Expansion Opportunities, CEO Says - Bloomberg

Magnati, the payments business of First Abu Dhabi Bank PJSC, is weighing expansion opportunities after Brookfield Business Partners LP agreed to buy 60% stake in the firm, its chief executive officer said.

“All options are on the table,” Ramana Kumar told Bloomberg TV on Wednesday when asked if Magnati may consider acquisitions. The firm needs to build scale, showcase its presence in the Middle East and Africa and “we need to expand, and we will look at all opportunities,” he said.

Brookfield Business Partners signed an agreement last month to buy 60% of Magnati at a $1.15 billion valuation. First Abu Dhabi Bank, which completed the carve-out of its Magnati business into a fully-owned subsidiary last year, will retain a 40% stake.

Demand for digital payments has grown after as the pandemic accelerated the shift toward online transactions. The Magnati transaction added to a spree of deal-making in the global payments industry, with banks seeking to offload operations in which they struggle to compete with specialist providers.

“Now we have the right propelling ammunition, now we just need to move,” Kumar said.

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