The Government of Dubai will immediately make adequate capital injection into Dubai Bank, thereby taking over the bank, a statement issued by the Dubai Government Media Office said.
The Government of Dubai emphasized that it has decided to act swiftly to ensure the preservation of all of Dubai Bank’s Depositors interests, according to the statement.
The injection will effectively dilute the complete holding of Dubai Bank’s current shareholders, and consequently allow the 100% takeover of the bank by the Government of Dubai.
Before this acquisition Dubai Bank was jointly owned by Dubai Holding and Emaar at 70% and 30% respectively.
The statement further clarified that the intervention is designed to ensure that Dubai Bank’s business continues uninterrupted while options for the bank’s future, whether to be run on a stand-alone basis or be potentially merged with another bank in which the government has ownership, are being assessed.
The Central Bank of the UAE and the Ministry of Finance have extended their support to Dubai Governments’ initiative.
The management team at Dubai Bank will not be affected by the takeover and will remain in place without any changes, the statement said.
