Finablr enters into definitive agreement to sell its share capital to Prism affiliate GFIH
Further to reports from October 2020, Finablr today announces that it has entered into a definitive agreement with Global Fintech Investments Holding AG (GFIH), an affiliate of Prism Group AG to sell to GFIH the entire issued share capital of Finablr Limited, Finablr’s wholly owned subsidiary.
Finablr Limited owns the entire remainder of Finablr’s group (the “Target Group”). The transaction will constitute the sale by Finablr of its entire business and operations. Prism has formed a consortium with Abu Dhabi’s Royal Strategic Partners (RSP) in connection with the transaction.
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 Finablr’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 will pay to the company, by way of additional consideration, a further amount equal to 25% of any such funds received by the Target Group from third parties, up to a maximum of US$190 million.
Finablr plans to use the nominal consideration and any further consideration received to return value to its creditors, followed by its shareholders.
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 frontier markets.