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The board of directors of Dubai Islamic Bank (DIB) will meet on November 25 to discuss the acquisition of Noor Bank, DIB said in a statement.
Noor Bank is the only remaining unlisted bank in the UAE following a three-way tie-up between listed banks Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) with unlisted Islamic lender Al Hilal Bank.
“DIB probably wants to further consolidate its domestic prominence by acquiring Noor Bank to increase market shares in loans and bank deposits by roughly 2 percent each,” Maria Elena Ponceca, a senior analyst at Al Ramz Capital had told Zawya in April, when the discussions were first announced.
“It would make economic sense, especially if Noor will be acquired at an attractive discount and DIB takes advantage of the potential consolidation by further cleaning the books of both banks,” Ponceca added.
Dubai’s sovereign investment group, Investment Corporation of Dubai (ICD), is a shareholder in both DIB and Noor Bank. ICD owns 28.37 percent of DIB and 23.9 percent of Noor Bank.
(Writing by Gerard Aoun; editing by Seban Scaria)
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