MANAMA, BAHRAIN: Al Salam Bank introduced that the acquisition of Ithmaar Bank’s consumer banking division and a variety of different assets in a transaction worth US$2.2 billion received the shareholders’ approval of Ithmaar Holding B.S.C. at an EGM on Thursday, 17 March 2022.
The approval follows a memorandum of understanding in October 2021 and the settlement to proceed with the transaction in January 2022.
“This transaction is a significant step in our continued journey towards achieving our long-term growth strategy,” said H.E. Shaikh Khalid bin Mustahil Al Mashani, Chairman of Al Salam Bank.
“Al Salam Bank continues to construct on its robust track-record by executing quite a few natural and inorganic growth initiatives cementing Al Salam Bank’s place because the quickest rising financial institution within the Kingdom of Bahrain.
“With significant potential for shared synergies, the acquisition of Ithmaar Bank’s consumer banking portfolio, with its wealthy historical past spanning almost 4 decades, will result in significant growth for Al Salam Bank and can additional reinforce Bahrain’s place as a quantity one Islamic Banking hub.”
The transaction, which is topic to regulatory approvals and definitive agreements, entails the sale and switch of: the entire consumer banking enterprise of Ithmaar Bank, a 26.19% stake in Bank of Bahrain and Kuwait B.S.C. (BBKB.BH), a 55.91% shareholding in Solidarity Group Holding B.S.C. (Closed), a 1% curiosity in The Benefit Company B.S.C., and different assets together with MasterCard Inc. shares and portfolio of Sukuk and liquid assets.
The acquisition will boost Al Salam Bank’s industry positioning because the largest Islamic financial institution in Bahrain and one of many main banks within the Kingdom. It is anticipated that the acquisition will emerge as a benchmark for profitable M&A’s locally and regionally.
Rafik Nayed, Group CEO of Al Salam Bank said, “The transaction will positively impact our clients. We will leverage a stronger worth proposition to higher serve client wants and elevate their banking expertise in line with our model promise. We plan to capitalise on our expanded resources and infrastructure to ship an enhanced product and repair offering.”
With its confirmed track-record in mergers and acquisitions, mirrored in its profitable acquisition of BMI Bank in 2014 and merger with Bahraini Saudi Bank (BSB) in 2011, this landmark transaction will reinforce Al Salam Bank’s place as a quantity one monetary establishment within the region, successfully increasing its core-banking operations and accelerating market share acquisition within the consumer banking segment.
By accelerating its tempo in capturing worth through the added profit of a mixed buyer base, this transaction is designed to proceed the resilient and sustainable growth trajectory of Al Salam Bank. The transaction will considerably contribute to the Kingdom’s imaginative and prescient of strengthening its monetary sector, complementing nationwide efforts to reinforce the Kingdom’s place as a key regional Islamic banking hub.
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