Font Size

- Aa +

Thu 17 Mar 2011 11:20 AM

Font Size

- Aa +

Qatar's QIIB to buy out Islamic Bank of Britain

Deal values British bank at $40.19m; Gulf state also eyeing stakes in RBS and Lloyds

Qatar's QIIB to buy out Islamic Bank of Britain
BANK STAKE: QIIB has agreed to buy full control of the Islamic Bank of Britain (Getty Images)

Qatar International Islamic Bank (QIIB) has agreed to buy
full control of the Islamic Bank of Britain, in a deal that values the British
bank at around $40.19m.

QIIB is offering one pence a share for the bank, which
already counts members of Qatar’s ruling Al Thani family among its major
shareholders.

Last year, QIIB had already moved to raise its stake in IBB
to 81 percent.

"Our long-term strategy is to build an international
Sharia-compliant banking business and we believe that our extensive experience
in Sharia banking will allow us to develop and integrate the IBB business into
the QIIB group,” said QIIB chairman Sheikh Khalid Bin Thani Bin Abdullah Al
Thani in a statement.

Qatar in February said it would consider buying into part
state-owned UK lenders RBS and Lloyds Banking Group.

The Gulf state has stakes in a string of UK companies
including retail giant J Sainsbury, Barclays bank and German automaker Porsche
through QIA.

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.