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Mashreq sells majority stake in NeoBank in $385m deal

By Gavin Gibbon
Mashreq Bank sells Neopay Creative Commons/World Economic Forum
Abdul Aziz Al Ghurir, chairman of Mashreq Bank. Net profit before tax for the first six months of 2024 grew 24% to AED4.5 billion

Mashreq Bank has sold a 65 percent stake in its subsidiary IDFAA Payments, more commonly known as NeoPay, in a deal worth $385 million.

The Dubai-listed lender sold the stake to Bahrain-headquartered alternative asset manager Arcapita Group Holdings Limited and Turkish fintech company Dgpays SARL, according to a bourse filing.

Person, Electronics, Mobile Phone

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It said Mashreq would retain a minority stake with plans to enter into a “long-term shareholder arrangement with the purchasers for the future growth of the business”.

The deal is subject to regulatory approvals and consents.

NeoPay was launched in March 2022 as a payment platform that helps businesses process digital transactions.

The business processed more than 400 million transactions in 2023 and is used by over 10,000 merchants in the country.

Mashreq’s net profit increased 14 percent year on year to AED4 billion ($1.1 billion) in the first six months of 2024 on higher interest income, business expansion and minimal risk costs.

Net profit before tax grew 24 percent to AED4.5 billion.

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