MIC Capital Partners, a fund owned by Abu Dhabi state investor Mubadala, has acquired a minority stake in Finablr, a United Kingdom-based Payments and foreign exchange (forex) platform.
Reported by Reuters on Tuesday, the fund has taken 3.4 percent of the total stakes in the company.
"They have taken a stake, over the past several weeks, in Finablr, reaching a level of disclosure required by the regulators," a spokesperson of the Finablr Group told the publication.
Notably, the company was founded by UAE-based billionaire BR Shetty, who also holds majority shares in the company.
The investment comes at a time when the UK-based company is on the verge of collapse following the stepping down of its chief executive Promoth Manghat. Given the struggles of the company, Manghat agreed to stay in the company until a successor replaces him.
The ongoing financial crisis of the company, along with the recent market troubles caused by the COVID-19 outbreak, made a massive dent on the company with concerns of its existence.
Preparing for the worst
The board of the company has also appointed an accountancy company for the task of insolvency.
"Following the announcement on 16 March 2020 with respect to Finablr's present Liquidity situation and ongoing discussions with its lending banks, the Board of Finablr has engaged an accounting firm to undertake rapid contingency planning for a potential insolvency appointment with a view to maximizing value in the Group," an official statement by the company on the London Stock Exchange (LSE) read.
This came after the board recently discovered $100 million in cheques written by group companies before the company's initial public offering (IPO) last year and are suspecting their usage as security for financing arrangements for the benefit of third parties.
Meanwhile, all the shares of the company were also suspended for trading.
