Arabic payment processing unit Network International up for auction

TPG, Abraaj Capital, the Emirates Investment Authority and Silverlake are said to have tendered for Network International yesterday, with the offers now being considered by the bank, which is thought to be looking for between $1bn and $1.5bn.

Network International is the biggest business of its kind in the Gulf, providing credit and debit card processing services to 49 banks.

Emirates NBD may be looking to sell an interest in the unit to raise cash for its expansion or to remedy its balance sheet following the global economic and Dubai property crashes.

The sale would also give Network International scope to expand via contracts with new parties, operating more autonomously to its parent. 

Payment processing businesses have been drawing a lot of private equity interest recently. The UK’s Royal Bank of Scotland is nearing the sale of its Global Merchant Services division to one of a string of interested buy-out groups for somewhere between £2bn ($2.95bn) and £3bn ($4.42bn), while US private equity groups last month gave up their $15bn pursuit of Fidelity National Information Services.

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