DUBAI Aug 1 Dubai Group has sold its 30.5
percent stake in Malaysia's Bank Islam to BIMB Holdings Bhd
for $550 million, the investment firm's second asset
disposal in less than two months.
A unit of Dubai Holding, the investment arm of the ruler
Sheikh Mohammed bin Rashid al-Maktoum, Dubai Group has been in
talks with bank creditors for nearly three years, since the
global credit crunch savaged its portfolio of assets.
BIMB Holdings, which currently owns 49 percent of Bank
Islam, had said earlier in the day that it will pay $884 million
to gain full control of the country's oldest and largest
standalone Islamic bank, in a deal that will help it expand in a
rapidly growing sector.
Dubai Group had acquired a 40 percent stake in Bank Islam
for $224 million in October 2006 but the stake was diluted to
30.5 percent in 2009 after a capital increase that the group did
not participate in.
The company sold its credit card business to Abu Dhabi
lender First Gulf Bank (FGB) for $164 million in June.
(Reporting By Mirna Sleiman; Editing by Dinesh Nair)