Emirates NBD has attracted a wealth of bids from private equity
groups following the announcement that it is to sell its payment
processing business Network International.

According to a report in the Financial Times, the
Dubai-based bank is seeking to sell a minority share in Network
International, valued at $1bn to $1.5bn, in order to fund the
company’s growth and shore up its balance sheet. Bidders include
private equity houses TPG, Abraaj Capital, Silverlake
and Emirates Investment Authority, the UAE’s sovereign wealth
fund.

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“The business has attracted serious
international attention,” one person close to the auction told the
Financial Times. “It’s hard to say where the valuation
will end up as other businesses worldwide are being sold at a
premium, so haggling is going to go on.”

Payment processing companies are particularly
attractive in emerging markets as there is more scope for expansion
into online and mobile payment services.

Private equity groups all over the world have
zeroed in on the card processing sector as a fertile area for deals
as banks look to free up extra funds and raise capital in the wake
of the economic crisis.

The UK’s Royal Bank of Scotland is currently
in talks with US private equity firms over the £2bn to £3bn valued
sale of its Global Merchant Services division, while a consortium
was rumoured another private equity group made
a $15bn bid to buy Fidelity National Information
Services.

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Network International is one of the leading
providers of credit and debit card processing services, serving 49
banks across the Middle East.