The Boards of Directors of ASBB and BMI Bank had earlier announced their respective resolves to combine the businesses by the way of exchanging 11 ASBB shares for each BMI Bank share wherein ASBB would acquire 58,533,357 BMI Bank shares of BD1 each and issue 643,866,927 ASBB shares of 100 fils each.
“I am pleased to announce that our shareholders have given their approval on the proposed business combination with Al Salam Bank Bahrain which will result in the combined entity becoming the fourth largest commercial Bank in terms of assets and fourth largest in terms of equity within the Kingdom of Bahrain. In addition to creating a larger and stronger financial institution, the combined entity would become an economically significant financial institution in the domestic market and position itself to expand regionally,” Sheikh Khalid bin Mustahail Al Mashani, Chairman of BMI Bank said.
“We are now working alongside ASBB to complete the legal and regulatory formalities to combine the two businesses which will provide all our customers with a range of quality products and services creating genuine value for all our stakeholders.”
Apart from size of the balance sheet the combined entity will have total assets of circa BD1.8 billion, financing facility of circa BD1.2 billion, equity of over BD290 million and total customer deposits in excess of BD 1.2 billion. BMI Bank reported its ninth straight net quarterly profit of BD0.88 million for the three quarters ended 30th September 2013, an increase of 141 % as compared to a net profit of BD0.4 million recorded over the corresponding period in 2012.