Dubai Banking Group (DBG), an investment holding firm that controls significant stakes in banks and financial institutions, has agreed to sell its 48.36 per cent stake in Shuaa Capital to Abu Dhabi Financial Group (ADFG).

The sale is subject to regulatory approvals, Shuaa said in a statement to the Dubai Financial Market, where its shares are traded. It did not give financial details on the transactions in the brief statement. At the current market value of close to 70 fils per share, the stake is estimated to be worth about AED354m ($97m).

Shuaa reported revenues of AED46m in the first quarter of 2016, and made a AED28m loss. This was mainly due to increased provisioning against poorly performing small- and medium-sized enterprise (SME) loans.

Alternative investment firm ADFG, Dubai-based Arqaam Capital and the local Al-Mal Capital had emerged as bidders for DBG’s stake in Shuaa. The local Emirates NBD was mandated to arrange the sale.

DBG is a subsidiary of Dubai government-owned investment vehicle Dubai Group, which had confirmed the sale process in May. Dubai Group’s holdings in Egyptian investment bank EFG Hermes and Oman’s Bank Muscat will also be sold this year as part of a restructuring agreement, its CEO Fadel al-Ali told reporters on 24 May.