ADCB said that the advisory engagement has been structured as a two phase process and is expected to deliver an outcome by third quarter of 2011.
Any action taken by ADCB as a result of the advice received will be subject to further internal deliberations and all requisite approvals, the ADCB added.
As part of this process, ADCB bank’s management will be committed to assess and appropriately prepare in advance for any relevant impact to business strategy, profitability and capital adequacy requirements.
ADCB CEO Ala’a Eraiqat said that RHB is a key strategic asset for ADCB as evidenced by its contribution to the profitability and the capital the bank has allocated to this investment.
‘We are pleased with the business and financial performance of RHB to date, are supportive of the management team in place and continue to have strong partnerships with all relevant stake-holders" Eraiqat said.
ADCB head of investment banking group Arul Kandasamy said that ADCB has a pro-active approach to managing all the bank’s portfolio investments, including RHB.
"We have a clearly articulated strategy to maximize value for our shareholders and to optimize use of capital. Given the significance of RHB to ADCB, we have decided to appoint advisors with ‘best in class’ expertise to explore all options available to ADCB in relation to this investment." Kandasamy said.
