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Wed 28 Jul 2010 02:04 PM

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QIIB seeks to raise stake in Islamic Bank of Britain

Lender wants to raise its holding to a 'significant stake' by offering new shares.

QIIB seeks to raise stake in Islamic Bank of Britain
BANK STAKE: QIIB wants to raise its stake in the British Islamic lender significantly. (Getty Images)

Qatar International Islamic Bank (QIIB) wants to raise its holding in the Islamic Bank of Britain to a "significant stake" by offering new shares, it said on Wednesday.

The increase is subject to regulatory approval and shareholders of the Islamic Bank of Britain (IIB), it said in a statement on the bourse website.

On Tuesday, IBB announced plans to raise 20 million pounds ($31 million) through the placement of new shares priced at 1 pence per share to QIIB and that trading continued to be "challenging".

"The Company has explored its options for raising new finance and concluded that its shareholders are best served by the Company securing funds from an existing shareholder, QIIB," it said.

The shares will be issued at a 69.2 percent discount to the 3.25 pence per share price on July 26 and a 67.5 percent discount to the net book value per share as at end of 2009.

Shares in QIIB were trading 0.9 percent higher at 0930 GMT.

QIIB holds an 11.2 percent stake in the IBB and is the Gulf state's sixth largest lender by market value.

Following the shares placement, the Qatari lender will be an 81 percent shareholder in IBB.

Members of Qatar's ruling al-Thani family are also major shareholders in the bank which listed on the London Stock Exchange in October 2004.

A meeting of IBB shareholders has been called for August 17. (Reuters)

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