Dubai-listed Mashreq Bank will sell a 65% stake in NeoPay, a key Mashreq subsidiary for IDFAA Payments Services LLC, to Arcapita Group Holdings Limited and Turkish fintech firm Dgpays S.A.R.L. The local lender is expected to enter a long-term shareholder arrangement with Arcapita and Dgpays to accelerate growth in the region and on the global stage.
A bourse filing revealed that the transaction represents an approximate enterprise value of $385 million for the subsidiary. Mashreq’s NeoPay is primarily used by businesses to process transactions, including in Point-of-Sale (POS) terminals, eCommerce, mobile payments, and other non-cash payments. The acquisition is subject to regulatory approvals and consents, upon which Mashreq will retain a minority stake in its homegrown financial instrument.
Arcapita, a Bahrain-based alternative asset manager, operates in the GCC, Singapore, the UK, and the USA. Turkish Dgpays, operates in the UAE, Luxembourg, and the USA. Mashreq boasted a 14% year-on-year net profit hike in the first six months of 2024. These numbers were driven by higher interest income, business expansion, and minimal risk costs.
