MANAMA: Bank of Bahrain and Kuwait (BBK)’s acquisition of Ithmaar Bank has moved ahead with both companies reporting the appointment of advisers.
In a filing to Bahrain Bourse yesterday, Ithmaar Holding, the parent of Ithmaar Bank, said it is currently in the process of appointing advisers for the proposed deal, whereas BBK made a disclosure to shareholders on Tuesday (Oct 13) that the appointment of a financial adviser was in the works.
“Additional material disclosures will be provided as and when they arise, in compliance with relevant rules and regulations,” said Ithmaar Holding.
It added that the impact of the move on its financial position has yet to be assessed.
Ithmaar Bank operates the largest Islamic retail banking network in Bahrain.
A month ago the two had announced the signing of a memorandum of understanding (MoU) on the potential acquisition by BBK of Ithmaar Bank’s Bahrain operations as well as specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding.
If the deal goes through, it will expand BBK’s operations in Bahrain and add a turnkey, full-service Islamic banking solution.
The acquisition plan is subject to shareholder and regulatory approvals, and is still in the discussions phase and subject to the completion of due diligence by both parties.
Ithmaar said the proposal is in line with its strategy of creating value for its shareholders.
avinash@gdn.com.bh
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