Bahraini islamic banks to vote on merger

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Bahraini islamic banks Capivest, Elaf Bank and Capital Management House are set to vote on a potential three-way merger later this month.

Kuwait Finance House-Bahrain, acting as transaction advisor, said the vote would take place at shareholder meetings to be held by the end of June.

If approved, the newly created entity will have a shareholders' equity of almost $350m and assets in excess of $400m, a statement said.

The transaction is the first three way merger proposal to take place in Bahrain, the statement added.

In addition to shareholder approval, the merger is subject to regulatory approval and is expected to be completed in the second half of this year.

The proposed merger was announced in September last year and the three banks have been meeting regularly to discuss the details of the transaction. The due diligence and valuation exercise has already been formally completed.

The merger may prove to be a model and a catalyst to further mergers in the Bahrain Islamic Banking market, KFH said in the statement.

Abdulhakeem Alkhayyat, managing director and CEO of KFH-Bahrain, said: "The merger is expected to be transformational for the three banks and it is anticipated to bring significant benefits to their potential customers, shareholders and wider stakeholders in the Kingdom of Bahrain.

"This merger will strengthen the banks' capital bases and will result in creating a stronger financial institution with a diversified shareholder mix."

In February, Bahrain Islamic Bank ended talks with Al Salam Bank over plans to merge to create a new $4.5bn entity.

The banks “agreed to end merger talks after they were unable to reach an agreement on the exchange ratio for the shares,” according to a statement.

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.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Women edge into Gulf boardrooms as economies, societies shift

Women edge into Gulf boardrooms as economies, societies shift

Amina al-Rustamani, CEO of TECOM Investments, is leading the...

2
Dubai mulls rule change to lure more domiciled funds

Dubai mulls rule change to lure more domiciled funds

Proposed rules would create a new class of funds in the Dubai...

Gulf's rift over Qatar may slow investment, reforms

Gulf's rift over Qatar may slow investment, reforms

Analysts suggest dispute may not hurt immediately but could impact...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams