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Sun 14 Jun 2009 04:08 PM

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NBK buys 19.1% in Islamic lender for $420m

NBK to buy Commercial Bank of Kuwait's stake in Boubyan Bank as part of strategic drive.

National Bank of Kuwait (NBK) is to buy the Commercial Bank of Kuwait’s (CBK) stake in Boubyan Bank for $420m, it was announced on Sunday.

Kuwait’s largest bank by assets said it will buy 220,631,095 shares in its smaller rival for 550 fils per share, or KD121m ($420m).

“The move complements NBK’s strategic drive to enter the Islamic banking industry that is witnessing high growth potential,” the bank said in a statement.

Al Watan newspaper reported last month that the bank had turned down an offer to buy CBK’s 19.1 percent stake in Islamic lender Boubyan Bank.

NBK received central bank approval to buy up to 40 percent in Boubyan in December last year.

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