Finablr PLC Update on transaction of Finablr Limited
RNS Number : 9796I
17 December 2020
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014.
17 December 2020
Finablr PLC (the "Company")
Update on transaction of Finablr Limited
Further to its announcement on 6 October 2020, the Company today
announces that it has entered into a definitive agreement with
Global Fintech Investments Holding AG ("GFIH"), an affiliate of
Prism Group AG ("Prism") to sell to GFIH the entire issued share
capital of Finablr Limited, the Company's wholly owned subsidiary.
Finablr Limited owns the entire remainder of the Company's group
(the "Target Group" and the "Transaction"). The Transaction will
constitute the sale by the Company of its entire business and
operations. Prism has formed a consortium with Abu Dhabi's Royal
Strategic Partners ("RSP") in connection with the Transaction, as
further described below.
Terms of the Transaction
The completion of the Transaction is subject to customary
conditions, including the receipt of certain regulatory
In return for the transfer of the Target Group to GFIH, in
addition to the nominal initial consideration of US$1 payable, GFIH
is providing working capital support to the Target Group to enable
it to continue to operate and to support various stakeholders in
the Target Group, including employees and creditors of the Target
Group. In addition, GFIH will undertake to support and facilitate
the Company's continued efforts to recover funds from third parties
in respect of possible historic wrongdoing within the Group. In
this regard, subject to certain conditions, the Company and GFIH
have agreed that GFIH shall pay to the Company, by way of
additional consideration, a further amount equal to 25 per cent of
any such funds received by the Target Group from third parties, up
to a maximum of US$190,000,000. GFIH has also agreed certain
provisions with the Company relating to the coordination of efforts
to investigate possible historic wrong doing within the Target
The Company intends to use the nominal consideration and any
further consideration received to return value to its creditors,
followed by its shareholders. Given the circumstances of the
Company and the fact that absent the proposed funding from GFIH the
Company will have insufficient working capital the Board of the
Company believes that the Transaction is in the best interests of
the shareholders of the Company.
Prism has formed a consortium with Abu Dhabi's RSP to rescue and
rebuild the UAE-based financial services company, Finablr.
Together, Prism aims to work with all stakeholders to revitalise
the Target Group, which was a core pillar for cross border
financial services in the UAE, providing currency exchange and
remittance solutions that supported thousands of businesses and
millions of customers around the world.
Prism and RSP are building a highly experienced executive
management team to help lead the proposed transformation of
Finablr. Through this transformation, Prism intends to create a
world-leading, financial services platform for the emerging and
Prism and RSP believe they have a strong network within the key
public and private sectors, which will bring tangible value and
support to our all stakeholders including clients, employees,
regulators, suppliers and third-party vendors.
Prism and RSP are working with established advisors to help find
the optimal solution for the near-term and long-term benefit of the
Target Group. Prism has retained Kirkland & Ellis, White &
Case and Druces LLP as legal counsel, and a global restructuring
firm as financial advisers.
Prism and RSP look forward to engaging with all stakeholders in
connection with the proposed restructuring of the Target Group.
Bhairav Trivedi, Group Chief Executive Officer, email@example.com Tel +1 (484) 358-7357
Rob Miller, Group HR and Restructuring Implementation Director,
firstname.lastname@example.org Tel +44 7801 663858
For more information, visit the Finablr website:
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(END) Dow Jones Newswires
December 17, 2020 02:30 ET (07:30 GMT)