Bahrain-based GFH Financial Group has increased its stake in Khaleeji Commercial Bank (KHCB) to nearly 70 percent, it said on Monday.
In a bourse filing to the Dubai Financial Market (DFM), the Islamic wholesale investment bank said it has expanded its stake in its affiliate from 55.41 percent to 69.05 percent, as part of its business strategy. A portion of the shares, 3.8 percent, were acquired from asset management firm Shuaa Capital.
“The acquisition is expected to have a positive impact on the Group’s profitability,” GFH said.
The company reported a net profit attributable to shareholders of $16.1 million for the first three months of 2021, up from $5.1 million in the same period last year. Assets of the Group also went up by 10.8 percent to $7 billion during the same period.
In a separate statement, Shuaa said the sale of its KHCB shares to GFH is part of its strategy to exit its non-core assets. "The sale is expected to contribute positively to Shuaa's Q2 financials," the company said.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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