Flip through the latest issue of Gulf Weekly.
Ithmaar Bank and Shamil Bank shareholders gave their strong support to Ithmaar's planned 100 per cent acquisition of Shamil at two Extraordinary General Meetings (EGMs) last week.
Ithmaar shareholders also agreed to the doubling of the Bank's authorised share capital from $500 million to $1 billion, with each share remaining at a nominal value of 25 cents. They approved the issuance of 729,600,000 new shares, including 288,000,000 bonus shares that will go to existing Ithmaar shareholders, with the remainder swapped for Shamil Bank shares.
The acquisition, subject to the approval of the Ministry of Industry and Commerce, will be carried out by swapping every 10 shares held by minority shareholders in Shamil Bank for 12 shares in Ithmaar Bank. Once completed, the transaction will make Shamil Bank a wholly owned subsidiary of Ithmaar Bank. Shamil Bank, however, will continue to operate under its own brand name.
Ithmaar Bank chairman Khalid Abdulla-Janahi said that this acquisition will further strengthen the synergy between Ithmaar and Shamil, both of which are leaders in their respective fields.
"This transaction is another step towards consolidating the different companies that make up the Ithmaar banking group. Shamil will undoubtedly benefit from having closer association with a global financial institution like Ithmaar Bank, which will help it uncover new opportunities and enter new markets," he continued.
"Ithmaar Bank, meanwhile, further consolidates the existing relationship with its subsidiary, Shamil Bank, one of the most profitable and fast-growing Islamic institutions in Bahrain. This strategic acquisition demonstrates how highly we value its role within the group. Shamil Bank has very strong brand equity in the Kingdom and a sizeable market share. It will, therefore, continue to operate under its current name," Janahi added.
"Ithmaar Bank and Shamil Bank complement each other perfectly and we firmly believe that this transaction can only bring good news to the shareholders of both institutions. We look forward to a new level of cooperation between the two banks in the years to come," said Shamil Bank chairman Mohamed Abdulla Al Anqari.
