GFH, a Bahrain-based Islamic investment firm, has suspended its acquisition talks with Dubai-based Shuaa Capital, following non-agreement of acquisition terms and regulatory approvals.
In a statement on the Dubai Financial Market (DFM) on Monday, the company said: “GFH confirms to its shareholders and the markets that the withdrawal was a result due to both parties not reaching agreed acquisition terms and not receiving initial regulatory approval yet. Therefore, both parties have agreed to postpone the discussions regarding the acquisition for the time being."
It added that it would still be on the hunt for an acquisition of a financial institution as part of its efforts to diversify business lines and push for growth.
In March, GFH said it has been in talks with several financial institutions, including Shuaa, about potential majority stake acquisitions and mergers.
A merger of the two firms would have created an entity with a market capitalisation of $2.5 billion (AED9.175bn) with interests extending from retail, investment banking, brokerage, and property development.
Shuaa Capital closed 5.3 percent down at AED1.43, while shares of GFH fell 4.7 percent to end at AED2.25 on the DFM on Monday.
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