Finablr, the scandal-hit payments and foreign exchange solutions company, has decided to sell its operations to Global Fintech Investments Holding AG (GFIH), an affiliate of Prism Group AG of Israel, for $1. 

 

Finablr, owned by NRI businessman BR Shetty, has announced that it has entered into "a definitive agreement" with GFIH to sell the entire issued share capital of Finablr Limited, its wholly owned subsidiary, for "a nominal initial consideration of $1", said a report.

 

Prism Group, linked to a former Israeli Prime Minister Ehud Olmert, has formed a consortium with Abu Dhabi's Royal Strategic Partners (RSP) in connection with the transaction, said the Khaleej Times report.

 

RSP, which is headed by Abubaker Al Khoori, is affiliated with Sheikh Hazza bin Zayed Al Nahyan, Vice Chairman of the Abu Dhabi Executive Council.

 

Finablr's assets include its foreign exchange subsidiary, UAE Exchange, which is majority owned by Shetty.

 

The transaction will constitute the sale by Finablr of its entire business and operations. "In return for the transfer of Finablr Limited to GFIH, in addition to the nominal initial consideration of $1 payable, GFIH will be providing working capital support to the cash-strapped Finablr to enable it to continue to operate and to support various stakeholders, including employees and creditors of the Target Group (Finablr Limited)," the group said in a filing on London Stock Exchange.

 

As per the agreement terms, GFIH will also undertake to support and facilitate Finablr's continued efforts to recover funds from third parties in respect of possible historic wrongdoing within the group.

 

"In this regard, subject to certain conditions, the Company and GFIH have agreed that GFIH shall pay to the Company, by way of additional consideration, a further amount equal to 25 per cent of any such funds received by the Target Group from third parties, up to a maximum of $190 million," said the company.

 

Finablr plans to use the nominal consideration and any further consideration received to return value to its creditors, followed by its shareholders.

 

Shares of London-listed Finablr were suspended in March amid the unfolding of shocking scandals and allegations of forgery, fraud and whopping debts amounting to $6.6 billion with NMC Health, the bankrupt healthcare group founded by Shetty, who has since been staying in his Indian home state of Karnataka.