Bahrain Islamic banks merger completed

Capivest, Elaf Bank and Capital Management House close deal for first three-way merger

The merger will create a strong Islamic banking institution in Bahrain.

The merger will create a strong Islamic banking institution in Bahrain.

The merger of three Bahrain-based Islamic banks has been completed to create a new financial institution with total equity of about $340m, it was announced on Monday.

KFH-Bahrain, which acted as transaction and lead advisor to the deal, said the new entity would also have assets totalling more than $400m spanning the Middle East and North Africa, Europe and Asia.

Capivest, Elaf Bank and Capital Management House were given the green light to merge after the extraordinary general meetings of the three banks approved the deal last year.

The transaction is the first three-way merger to take place in Bahrain.

The merger has now been closed after obtaining the final approval of the Central Bank of Bahrain and the Ministry of Industry and Commerce, a statement said.

KFH-Bahrain added that the deal had created "a robust merged entity that is able to better compete in the dynamic and growing global Islamic banking and investment industry".

The statement added: "With a larger capital base, the newly created institution will be better positioned to participate in larger investments and projects and to quickly and more effectively capitalise on a broader set of available opportunities both across the MENA region and globally."

Abdulhakeem Alkhayyat, managing director and CEO of KFH-Bahrain, said: "We are delighted to announce the legal and financial closing of this historic merger.

"With an enhanced capital base, diverse mix of shareholders, assets and revenues, a new bank emerges with the size, scale and resources to deliver greater investment opportunities and value to both investors and shareholders alike."

"We are confident that the merged shareholder and human resource base provides for the selection of a strong board and a capable management team pooled from within the existing resources of the three banks."

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
First bank merger in 20 years sets Saudi Arabia up for more deals

First bank merger in 20 years sets Saudi Arabia up for more deals

Q&A look at what the planned merger of HSBC and RBS’s Saudi ventures...

A natural move: How Dubai Chamber is strengthening its ties in Latin America

A natural move: How Dubai Chamber is strengthening its ties in Latin America

With vast resources and more than half-a-billion people, the...

If Saudi future's so bright, why can't these banks find buyers?

If Saudi future's so bright, why can't these banks find buyers?

No big-name global banks eager to buy stakes in Saudi banks,...

Most Discussed
  • 9
    Revealed: huge disparity in Dubai school fees

    I recall a recent study by Alpen Capital suggesting that the average cost of a child's entire life of schooling in Dubai is about AED 1 million. Although... more

    Monday, 29 May 2017 9:21 AM - New Expat
  • 3
    How Saudi Arabia blundered into OPEC oil cut

    Well written piece. Clearly the pressure on OPEC countries holding to their quotas will become even harder. Nigeria etc. are desperate to pump & sell a... more

    Monday, 29 May 2017 9:18 AM - Victory Red
sponsoredTracking