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Report: Deutsche Bank mulls sale of stake in UAE's Abraaj

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Report: Deutsche Bank mulls sale of stake in UAE's Abraaj

Deutsche Bank AG plans to sell its stake in embattled United Arab Emirates-based firm Abraaj Group Ltd., Reuters reported, citing two sources familiar with the matter.

The German lender has an 8.8% stake in Abraaj, according to the bank's 2017 annual report.

The sources said Deutsche Bank has been considering selling its stake in Abraaj for some time. One of the sources said the lender has asked for a valuation of its shareholding about two years ago, but the estimate was not as high as it hoped. However, Deutsche Bank's restructuring drive and Abraaj's ongoing dispute with four investors in a $1 billion healthcare fund who suspect that their money had been misused have added more urgency to the plan, the sources added.

Since the allegations by the healthcare fund investors emerged in February, Abraaj has released commitments made by investors to its now-shelved $6 billion private equity fund and laid off staff.

Meanwhile, Bisher Barazi and Matthew McGuire, CFO and COO of Abraaj's private equity unit, have left the firm, a source close to the matter told Reuters.

The group was reported to be in advanced discussions with U.S.-based Cerberus Capital Management LP and Colony NorthStar Inc. for the sale of its private equity business in a potential deal that could be valued at up to $600 million. Abraaj said the sale of the business, along with the long-delayed sale of its stake in Pakistani power utility K-Electric Ltd. to China-based Shanghai Electric Power Co. Ltd., will help it address any potential liquidity problems.