GFH plans open offer to acquire public shareholding of KHCB

GFH is seeking to acquire up to 187,589,034 ordinary shares of KHCB

  
Traders wait at the Bahrain Bourse after Joe Biden won the U.S. presidency, in Manama, Bahrain, November 8, 2020.

Traders wait at the Bahrain Bourse after Joe Biden won the U.S. presidency, in Manama, Bahrain, November 8, 2020.

REUTERS/Hamad I Mohammed

MANAMA: GFH Financial Group (GFH) intends to make an open offer to acquire the entire public shareholding of its Sharia-compliant commercial banking subsidiary, Khaleeji Commercial Bank (KHCB).

In a filing to Bahrain Bourse on September 15, the investment firm said it has submitted a pre-conditional voluntary offer to the board of directors of KHCB and intends to proceed with the bid after certain pre-conditions are satisfied or waived.

GFH is seeking to acquire up to 187,589,034 ordinary shares of KHCB (constituting voting rights), not currently owned by it through KHCB Asset Company, representing up to 21.03 per cent stake of the Islamic retail bank’s issued and paid up share capital.

The consideration for the offer is shares in GFH, at a share exchange ratio of 0.914 GFH shares per KHCB share.

The share exchange element of the offer will be settled through treasury shares of up to 171,416,377 shares, or 4.5pc stake in GFH.

The firm said it intends to exercise any rights of compulsory acquisition, which may become available to it, if 90pc of shareholders accept the offer.

The remaining shareholders, who have not accepted the acquisition offer, shall be obliged to sell their shares to GFH, within three months.

In June, GFH acquired 13.64pc additional stake in KHCB increasing its ownership from 55.41pc to 69.05pc. It has pledged 336,134,454 KHCB shares to Sharjah Islamic Bank and also holds BD60 million additional tier 1 sukuk issued by the bank.

GFH has also announced ordinary and extraordinary general meetings on October 7, where the proposed acquisition will be put to vote.

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