National Bank of Bahrain (NBB) and Social Insurance Organization Asset Management Company (SIOAM) announced on Saturday that both have agreed with The Investment Dar KSC to purchase its shares in Bahrain Islamic Bank BSC.
After the transaction, NBB and SIOAM have bought 51.6% stake in the region’s oldest Islamic bank Bahrain Islamic Bank (BisB) from the Kuwait-based Investment Dar KSC (TID).
According to the deal, the shares are to be purchased by NBB and SIOAM at 72 fils per share. The purchase is subject to obtaining the required regulatory approvals for the transaction as well as agreement on final documentation between the various parties. NBB and SIOAM will each acquire 25.8% of BisB’s shares with this transaction. In November 2012, NBB and SIOAM had announced that they were commencing due diligence on this purchase.
“This investment represents a strategic initiative for NBB. We have been looking for an appropriate opportunity to establish a footprint in the Islamic banking industry and BisB represents a suitable vehicle for us. BisB’s strengths in Islamic banking and its sound retail franchise will complement our business. We expect to be closely involved with SIOAM and other stakeholders in the future growth of BisB,” Abdul Razak Hassan Al Qassim, CEO and Director of NBB, said.
“We are happy to conclude this transaction on behalf of our clients (the Military and the Private Pension Funds). We are committed to investing in sound Bahraini businesses and BisB is an illustration of that. BisB presents excellent value for money and is a major player in the Islamic banking sector. We will be working with NBB & other stakeholders to build the business further,” Shaikh Abdulla Khalifa Al Khalifa, CEO of SIOAM, said.