GFH Financial Group on Thursday said it intends to take over Khaleeji Commercial Bank subject to the approval of the Central Bank of Bahrain.
The plan to make an offer for shares in the Bahraini bank was approved by GFH shareholders during its ordinary general meeting and extraordinary general meeting.
Presided over by CEO Hisham Alrayes, the assembly also approved the continuation of listing the group’s shares on Boursa Kuwait as well as the repurchase of shares (treasury shares), up to a maximum of 10 percent of the total issued shares for a number of purposes.
Alrayes (pictured below) said: “We’re pleased with shareholder approval for the recommendations made by the board. The decisions taken will support the group’s activities focused on enhancing shareholder value, profitability and growth.
“We intend to soon takeover full ownership of KHCB… a move that will add strong additional income to GFH’s recurring income and lines of businesses especially after KHCB’s successful restructuring last year.”
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Shareholders also approved the board’s recommendation to issue sukuk in the amount of $300 million, subject to the final approval of the CBB.
Other matters raised by shareholders and addressed was the appointment of a market maker – a dealer in securities or other assets who undertakes to buy or sell at specified prices at all times – in the markets in which the group’s shares are listed.
In June, Dubai-based Shuaa Capital sold its 3.8 percent stake in KHCB to GFH Financial Group.
In a posting to Dubai Financial Market it was also announced that Goldilocks Fund – managed by Shuaa’s subsidiary, Shuaa GMC Ltd – also sold a 9.76 percent stake in KHCB to GFH.
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