February 07, 2022 (MLN): Faysal Bank Limited (FABL) has informed through a notice to exchange that the acquisition agreement between Al Salam Bank and Ithmaar Holding will not affect the beneficial ownership of FABL’s shareholding as the transaction did not include the shares of FABL, held by Ithmaar Bank, a wholly-owned subsidiary of Ithmaar Holding.
To note, Ithmaar Bank holds approximately 66.78% of the total shareholding in FABL.
As per the notice, Al Salam Bank and Ithmaar Holding have agreed on the acquisition by Al Salam Bank of the consumer banking business of Ithmaar Bank.
The acquisition includes Ithmaar Holdings’ ownership stake in both Bank of Bahrain and Kuwait B.S.C (BBK), and Solidarity Group Holding, one of the largest takaful groups globally and the parent of Solidarity Bahrain.
This announcement follows the execution of a memorandum of understanding between the two entities in October 2021. The transaction remains subject to the approval of Ithmaar Holding’s shareholders and the signing of definitive agreements.
HRH Prince Amr Al Faisal, the Chairman of Ithmaar Holding has said that “this transaction with Al Salam Bank is in line with Ithmaar Holding's long-standing strategy of creating value for its shareholders by delivering synergies within its portfolio holdings. Following the transaction, Ithmaar Holding will continue to hold a well-diversified portfolio of international and local financial and other assets which includes banking businesses in Bahrain and Pakistan”.
Ithmaar Bank, an integral player in the development of Islamic finance in Bahrain and the wider region, will remain to be a wholly-owned subsidiary of Ithmaar Holding, it added.
