Ahli United Bank (AUB) has completed the acquisition of a 40 per cent stake in Al Ahli Bank of Qatar through its latest capital increase.
The deal will increase the Qatari bank's equity from $85 million to $239 million, making it one of the largest banks in Qatar in terms of capitalisation and positioning it to benefit from the growth potential there. AUB has subscribed to the entire 12,187,500 new share issue after the existing shareholders waived their pre-emptive rights.
In addition to the purchase, AUB has signed a 10-year (renewable) management agreement which will see AUB oversee the management and provide technical and marketing services to the bank. The acquisition represents an important milestone in AUB's strategy to become a major regional bank in the Gulf by adding a significant presence in Qatar to its existing large operations in Bahrain, through Ahli United Bank Bahrain (wholly-owned subsidiary) and in Kuwait through Bank of Kuwait & the Middle East (48 per cent-owned affiliate).
As part of the agreement, Al Ahli Bank of Qatar QSC will be renamed Ahli Bank QSC. The increase in capital will allow Ahli Bank QSC to significantly grow its retail, commercial, treasury and private banking businesses, and will improve the quality and depth of services provided to its clients," said Hamad Al Marzouq, Deputy Chairman of AUB. The acquisition reflects AUB's determination and focused drive to create a dynamic cross-border business that offers regional clients leading-edge financial products, coupled with the highest standards of customer service.
Adel El Labban, AUB Group Chief Executive Officer and Managing Director said: "Ahli Bank QSC represents a major milestone in AUB's expansion in the Gulf. It provides a very useful platform for developing a significant presence in one of the most promising markets in the region. Ahli Bank QSC will be integrated into AUB's branch network as well as its service and marketing capabilities across the region and in the UK."
This investment represents AUB's fourth corporate combination since 2000 beginning in 2001 with the acquisition of an initial 15 per cent stake in Bank of Kuwait & the Middle East, a Kuwaiti domestic bank. This was followed in 2001 by Al Ahli Commercial Bank's acquisition of Commercial Bank of Bahrain (formerly Grindlays Bank, Bahrain) and renamed as Ahli United Bank (Bahrain) following full integration of operations.
© Bahrain Tribune 2004
