ABU DHABI MULLS ADNIC STAKE SALE

Allianz among those keen on 24pc equity, say sources

STATE-BACKED Abu Dhabi Investment Council is weighing the sale of its nearly 24 per cent stake in Abu Dhabi National Insurance Co (Adnic), with Allianz among groups showing initial interest in buying it, sources familiar with the matter said.

If the deal goes ahead, it will further boost Allianz’s presence in emerging markets and give the global insurer a stronger position in the United Arab Emirates (UAE), a market seen as ripe for consolidation.

Abu Dhabi Investment Council might hire an adviser for the deal, one of the sources said.

The council is an investment arm of the Abu Dhabi government, with holdings in several listed companies, such as First Abu Dhabi Bank and Abu Dhabi Commercial Bank .

Its mandate includes diversifying Abu Dhabi’s economy and the development of the corporate sector.

The sale plan is still in its preliminary stages, one of the sources said, but could attract more bidders.

The UAE’s third-biggest insurer by assets, Adnic has a market value of about US$377 million (RM1.6 billion), valuing Abu Dhabi Investment Council’s 24 per cent stake at about US$90 million. Reuters