Dubai’s Mashreq Bank has agreed to sell a 65% stake in NeoPay, its subsidiary IDFAA Payments Services LLC.
The payments company will be acquired by a consortium formed by Arcapita Group Holdings Limited and Turkish fintech firm Dgpays S.A.R.L.
The transaction values the subsidiary at approximately $385 million, according to a disclosure provided to the Dubai Financial Market (DFM), where its shares are listed.
The bank will enter a long-term shareholder arrangement with the purchasers to support the future growth of NeoPay, which provides businesses with transaction processing services, including POS terminals, eCommerce, mobile payments, and other non-cash payments.
Mashreq obtained a net profit of Dh4 billion in the first half of 2024, reflecting a significant 14% increase year-on-year (YoY), mainly driven by a 17% YoY increase in net interest income.
Arcapita operates in the GCC, Singapore, the UK, and the USA, while Dgpays has operations in the UAE, Luxembourg, and the USA.
