MANAMA: Bank of Bahrain and Kuwait’s (BBK) acquisition of Ithmaar Bank has moved ahead with the conventional bank appointing Emirates NBD Capital (EMCAP) as the main financial adviser.
In a filing to Bahrain Bourse BBK said its transaction team has started working with EMCAP to appoint the legal and accounting firms that will join hands in conducting the due diligence and other necessary preparatory work for the potential acquisition.
It has also agreed with Ithmaar Holding, the parent of Ithmaar Bank, on the final list of assets that will form part of the potential transaction.
Ithmaar Holding, which is also listed in the Dubai Financial Market, also filed a disclosure announcing that its advisers have started preparations for the sale.
Ithmaar Bank operates the largest Islamic retail banking network in Bahrain.
In September 2020, BBK and Ithmaar Holding signed a memorandum of understanding (MoU) on the potential acquisition by BBK of Ithmaar Bank’s Bahrain operations as well as specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding.
If the deal goes through, it will expand BBK’s operations in Bahrain and add a turnkey, full-service Islamic bank to the franchise.
The acquisition plan is subject to shareholder and regulatory approvals.
Ithmaar has said the proposal is in line with its strategy of creating value for shareholders.
Neither BBK not Ithmaar have given a timeline for the completion of the proposed acquisition.
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