COMMUNITY NEWS
Bank of Bahrain and Kuwait and Ithmaar Holding to discuss acquisition plans
Aug 26, 2020 1:36 PM
Bank of Bahrain and Kuwait (BBK), one of the largest commercial banks in Bahrain, and Ithmaar Holding, the parent of Ithmaar Bank, which operates the largest Islamic retail banking network in Bahrain, have entered into initial talks with regards to exploring a potential acquisition by BBK of Bahrain operations of Ithmaar Bank. The acquisition also includes specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding.
The plans, which are
subject to shareholder and regulatory approvals, are still in the preliminary
discussions phase and subject to the completion of due diligence by both
parties.
When implemented, the
plans will significantly expand BBK’s already large operations in Bahrain and
add a turn-key, full-service Islamic banking solution, while also bolstering
the already well established Ithmaar Bank brand and position it to better
capitalize on opportunities for growth.
Details of the plans
will be announced in due course, following necessary approvals.
The chairmen of both
institutions issued a statement welcoming the announcement:
“BBK has long played a key leadership role in the Kingdom of
Bahrain’s banking and financial services industry,” said BBK Chairman Murad Ali
Murad. “To maintain this leadership role, and as part of its ongoing business
expansion strategy, BBK has been exploring opportunities to expand its
activities and diversify its offerings, particularly in Sharia-compliant
banking businesses. Ithmaar Bank seems a natural fit, and we look forward to
exploring this possible acquisition further,” he said.
“Ithmaar Bank, an
Islamic retail bank, played a pioneering role in the establishment and
subsequent development of Islamic banking in the region,” said Ithmaar Holding
Chairman, His Royal Highness Prince Amr Al Faisal. “A wholly-owned subsidiary
of Ithmaar Holding, Ithmaar Bank is a growing, resilient bank that continues to
invest in the future and plays a key role in the community. This transaction is in line with Ithmaar
Holding’s strategy of creating value for its shareholders, and we look forward
to exploring this possible opportunity further,” he said.