MoU signed for acquisition of select assets of Ithmaar Bank, IB Capital
DUBAI: The stage is getting set for Bank of Bahrain and Kuwait (BBK), one of the largest commercial banks in Bahrain, to acquire Ithmaar Bank’s Bahrain operations as well as specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding
Ithmaar Holding, the parent of Ithmaar Bank, which operates the largest Islamic retail banking network in Bahrain, has signed on Monday (September 14) a Memorandum of Understanding (MoU) on these potential acquisitions.
The MoU, which was signed by BBK chief executive officer (CEO), Dr AbdulRahman Ali Saif, and Ithmaar Holding chief executive officer (CEO), Ahmed Abdul Rahim, who is also the CEO of Ithmaar Bank, is a follow-on on the joint BBK-Ithmaar Holding statement made on August 26, 2020 announcing the initial talks regarding these potential acquisitions.
“The plans, which are subject to shareholder and regulatory approvals, are still in the discussions phase and subject to the completion of due diligence by both parties,” an official statement noted.
BBK operations in Bahrain to expand
Once implemented, the plans are there to significantly expand BBK’s already large operations in Bahrain and also help add a turn-key, full-service Islamic banking solution, while also bolstering the already well-established Ithmaar brand as well as position it to better capitalize on opportunities for growth.
The official statement said that the plans are in line with Ithmaar Holding’s strategy of creating value for its shareholders. It also added that the details of the plans will be announced in due course, following necessary approvals.
Ithmaar Holding, listed on both Bahrain Bourse and Dubai Financial Market (DFM), is licensed as an investment firm and is regulated by the Central Bank of Bahrain (CBB).
Ithmaar Holding owns two wholly-owned subsidiaries, Ithmaar Bank, an Islamic retail bank subsidiary, which holds the core retail banking business, and IB Capital, an investment firm subsidiary, which holds investments and other non-core assets.
The two subsidiaries are licensed and regulated by CBB. Ithmaar Bank provides a diverse range of Sharia-compliant products and services that cater to the financing and investment needs of individuals and institutions.
Ithmaar also maintains a presence in overseas markets through its subsidiary, Faysal Bank Ltd (Pakistan), and locally through Dilmunia Development Fund. IB Capital maintains a presence in regional and overseas markets through its investments including in associated companies.