Sharjah makes enhanced offer for struggling Invest Bank
UAE central bank had asked Invest Bank to book provisions worth 2.199 billion dirhams
DUBAI: The Government of Sharjah in the United Arab Emirates has made an enhanced offer to invest in struggling Invest Bank INVB.AD and the bank's shareholders will vote on the deal on Jan. 8, the lender said on Sunday.
Sharjah, one of seven emirates in UAE federation, had earlier offered to invest up to 1.9 billion dirhams ($517 million) in Invest Bank, one of the smaller banks in the UAE.
A shareholder vote had been scheduled for Dec. 29, but the meeting was adjourned until Jan. 8 to vote on the enhanced offer, the lender said in a stock exchange filing.
It did not give details of the enhanced offer entailed.
The UAE central bank had asked Invest Bank to book provisions worth 2.199 billion dirhams ($599 million), which would have wiped off its equity of 2.154 billion dirhams.
Under the previous offer, the Government of Sharjah had planned to take a 50.07 percent stake in the bank after the issuance of new shares and offered to back its rights issue in the new year, according to Invest Bank.
Barclays is advising Invest Bank for the fund raising programme and HSBC is advising the Sharjah government. ($1 = 3.6730 UAE dirham)
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