MANAMA: Venture Capital Bank (VCBank), an Islamic wholesale bank, has countersigned a binding letter of intent from Esterad Investment Company, to acquire a majority stake with minimum of 75 per cent and up to 100pc stake in VCBank, as approved by VCBank’s board of directors.
Established in 1973, Esterad is a Bahrain-based investment company, publicly listed on Bahrain Bourse since 1974.
The principal activity of Esterad is to invest in a wide-range variety of investment assets in both local and international markets and with focus on public markets, private equity and real estate. Esterad portfolio contains high yielding investments that drive income and dividend payments and the company has a proven track record of secure investments, regionally and internationally.
Esterad had issued a binding letter of intent following satisfactory due diligence findings, as agreed in the initial non-binding letter of intent to acquire the bank, issued on November 29, 2021. The completion of this transaction is subject to both companies’ approval by their respective shareholders during their respective upcoming EGMs as well as all regulatory approvals.
Robert Wages, CEO of VCBank attributed Esterad’s interest to the bank’s recent improvement measures for its alternate investment portfolio.
“We welcome Esterad’s interest in VC Bank. Over the last year, we have undertaken measures to strengthen our core-performing investments while generating favourable exits for underperforming assets. An astute investment company such as Esterad recognises the value of our strongly diversified private equity and global real estate portfolio, and its shareholders are ideally placed to benefit from it,” added Mr Wages.
Mr Wages added, “This transaction will provide VCBank shareholders with an exit solution and will allow for the restructuring of the bank and to bring it back to compliance with all applicable regulatory requirements. Esterad will continue the bank’s fiduciary responsibility with respect to the management of the bank’s investors’ funds and Esterad highly recognises and values VCBank’s investors.”
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