A fund owned by Abu Dhabi’s Mubadala has taken a 3.4% stake in London-listed payments firm Finablr, a spokesperson said. This move comes as a much needed shot-in-the-arm for the beleaguered company. The stake was purchased by MIC Capital Partners, owned and managed by Mubadala Capital, a unit of Mubadala Investment Co, the state fund said.
Finablr, whose shares have been suspended, on Monday said it was doubtful about its ability to continue and said its chief executive would step down. On Tuesday, it used the services of an accounting firm to undertake rapid contingency planning for a potential insolvency.
“They have taken a stake, over the past several weeks, in Finablr, reaching a level of disclosure required by the regulators,” the spokesman said. Mubadala manages about $240 billion in assets.
Finablr had made a disclosure to the London Stock Exchange on Monday that MIC Capital Partners had built up a stake of 3.4%, but had not disclosed that the fund was linked to Mubadala.
Finablr was founded by BR Shetty, who also established troubled UAE hospital operator NMC Health, which earlier this month asked for an informal debt standstill to stabilize its finances. Finablr’s troubles come after problems at its Travelex business, which was hit by a ransomware attack late last year. The company is also facing disruption to its business from the coronavirus crisis.
Finablr’s other company, UAE exchange, has suspended all new transactions at UAE branches, it said in an email. The firm, which has over 150 branches in the UAE, engages in money transfers, foreign exchange and payments services. Finablr’s shares were temporarily suspended on Monday, following a steep slide in the company’s stock price due to uncertainty over founder BR Shetty’s financial holdings.
The shares have fallen by more than 90% this year.