Shareholders at three Bahrain-based Islamic investment banks have approved plans for a merger, it has been announced.
Capivest, Elaf Bank and Capital Management House have the green light to merge after the extraordinary general meetings of the three banks approved the deal.
The merger will be effective after obtaining the final approval of the Central Bank of Bahrain and the Ministry of Industry and Commerce, a statement said.
Once implemented, the newly created entity will have shareholders’ equity of almost $350m and assets in excess of $400m.
The transaction is the first three-way merger to take place in Bahrain, the statement added.
Isa Habib, vice chairman of Elaf Bank, said: "The aim of this merger is to establish a strong banking institution that is able to compete solidly in a changing market."
He added: "The merger will bring instant diversification of assets and revenues. Also, the bank will be able to capture larger projects and will enable it to diversify its capital sources."
Mohammed Abdulmalik, CEO of Capivest, said: “The three banks will gain numerous benefits from the merger; in particular, the merged bank will have a strong balance sheet from day one which will create a positive impact on our dynamic banking sector.”
Khalid Najibi, managing director of Capital Management House, added: “This fusion of competitive advantages in various markets makes us all excited and motivated to complete this merger and will work in the near future to announce the new brand identity of the bank which will reflect our client focus and future vision. We look forward to working side by side to achieve our shared goals."
The three banks, Capivest, Elaf Bank and Capital Management House were advised by Kuwait Finance House - Bahrain as transaction advisor, Trowers & Hamlins as legal counsel and Deloitte as independent valuer.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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