FGB Suspends Agreement With Libyan Unit

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A filing by First Gulf Bank (FGB) shows that it has ended ties with its Libyan unit, First Gulf Libya Bank (FGLB), after political unrest in the country and its investment in the unit has been classified as “available for sale.”

FGB, majority owned by Abu Dhabi’s ruling family, has suspended its management agreement with FGLB, adding the investment had a net carrying value of 396 million dirhams ($107.8 million).

“FGB has no involvement in the day-to-day operations of FGLB and FGLB is no longer classified as a subsidiary of FGB,” it said in a prospectus filed to the London Stock Exchange and dated July 11.

“FGB’s investment in FGLB is now classified as an available for sale investment.”

FGB shares were down 1.67 percent on the Abu Dhabi exchange at 0945 GMT.

Available for sale is an accounting measure that allows FGB to assign a fair value to the unit on its books, instead of impairment, and the bank said the unit was not currently on the auction block.

The Abu Dhabi lender, second largest in the United Arab Emirates by market value, said all FGB-nominated members in the Libyan entity had resigned.

Sources: Reuters

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