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First Gulf Bank Caps Foreign Ownership Percentage |
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Following a meeting held today (30 December), First Gulf Bank (FGB) Board of Directors approved to cap the percentage of foreign ownership of the total capital of the Bank to 15% with immediate effect , down from 30%. According to FGB’s Memorandum and Articles of Association, Article (8): the Board of Directors are authorized to increase or decrease this percentage as they may deem appropriate. “GCC markets in general and the UAE market in particular have constantly attracted foreign investors into the region thanks to the stability and opportunities they provided,” said His Highness Sheikh Hazza Bin Zayed Al Nahyan, Chairman of FGB. “FGB shares have always provided unparalleled returns to the shareholders with the Earning Per Share increasing quarter over quarter. In the last few months, FGB shares have been irrationally traded in the market resulting in share price decline by more than 50%. We have been thoroughly monitoring and analyzing the current market situation, and the movement in FGB ownership and share price. The decrease in the share price was in majority attributed to short term foreign speculators who took advantage of markets nervousness. In a step to protect our long term shareholders, both local and foreign, we decided to cap the foreign ownership to 15%.” His Highness added. “FGB is well positioned to continue with its consistent performance. Our focus remains on providing the maximum value for our long term shareholders. We will continue to monitor the market and offer opportunities to new long term foreign strategic partners as and when the market conditions change.” said Abdulhamid Saeed, FGB’s Managing Director. |
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