September 15, 2020 (MLN): Faysal Bank on Tuesday announced that Ithmaar Holding, i.e. the parent of Ithmaar Bank, has signed a Memorandum of Understanding with Bank of Bahrain and Kuwait (BBK), for exploring a potential acquisition by the latter of the Bahrain operations of Ithmaar Bank.
According to the notification issued to the PSX in this regard, Ithmaar Bank holds, directly and indirectly, approximately 66.78% of the total shareholding in Faysal Bank Limited. Ithmaar Bank is at present a wholly owned subsidiary of Ithmaar Holding. In other words, Ithmaar Holding is the ultimate beneficial owner of the FBL Shareholding.
In the event the Proposed Transaction is undertaken, the FBL Shareholding will be carved out of Ithmaar Bank and transferred to Ithmaar Holding. In other words, the direct and indirect shareholding of Ithmaar Bank in FBL will be held by Ithmaar Holding and will not be part of the Proposed Transaction. As such FBL’s ultimate beneficial ownership will not change i.e. ultimate beneficial ownership will continue to be Ithmaar Holding.
It is important to note that the Proposed Transaction is still in the very early stage and is not legally definitive.
