Indian billionaire BR Shetty’s Finablr Plc has announced the sale of its entire stake in subsidiary Finablr Limited to an Israeli-UAE consortium for $1.
On Thursday, Finablr said it has entered into “a definitive agreement” with Global Fintech Investments Holding, an affiliate of Israel’s Prism Group, to sell the entire issued share capital of its wholly owned subsidiary Finablr Limited, for “a nominal initial consideration of $1,” Khaleej Times reported.
Prism Group, linked to former Israeli Prime Minister Ehud Olmert, has formed a consortium with Abu Dhabi’s Royal Strategic Partners (RSP) in connection with the transaction.
The payments platform group in a filing at the London Stock Exchange said: “In return for the transfer of Finablr Limited to GFIH, in addition to the nominal initial consideration of $1 payable, GFIH will be providing working capital support to the cash-strapped Finablr to enable it to continue to operate and to support various stakeholders, including employees and creditors of the Target Group (Finablr Limited).”
The transaction will constitute the sale by Finablr of its entire business and operations.
This UAE-Israeli consortium also marks the first significant deal between both the nations after signing a nationalisation accord in early 2020. The Israeli finance minister sees this deal as a major annual bilateral trading opportunity.
Finablr, which had a market value of $2bn last December, was suspended from the London Stock Exchange earlier this year after declaring a debt of about Rs 40,000cr.