Qatari lender Masraf Al Rayan’s shareholders have approved the proposed merger with Al Khalij Commercial Bank in a move that would create one of the largest Islamic banks in the Middle East, according to a disclosure on Wednesday.
The merger by way of absorption will be completed through the issuance of new shares in Masraf Al Rayan to Al Khalij’s shareholders, subject to regulatory approvals and meeting of all the conditions set out in the merger agreement signed by the two entities in January, a statement to the Qatar Stock Exchange said.
Shareholders also approved the proposal to assume Al Khalij’s liabilities, which include term loan facilities of $120 million and trade facilities of $65 million which were provided by Arab Banking Corporation and Industrial Commercial Bank of China in 2017 and 2019, respectively.
The two lenders first announced the merger plan last year. In a previous filing, they said the proposal “will lead to the creation of one of the largest [shariah-compliant] banks in Qatar and the Middle East”.
The merged entity is expected to have 164 billion riyals ($45 billion) in assets.
(Writing by Cleofe Maceda; editing by Daniel Luiz)
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© ZAWYA 2021