The Bank of Bahrain and Kuwait (BBK),
one of the largest commercial banks in Bahrain, and Ithmaar Holding, the parent
of Ithmaar Bank, which operates the largest Islamic retail banking network in
Bahrain, signed today (ed note: 14/09/20) 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.
The MoU,
which was signed by BBK Chief Executive Officer, Dr. AbdulRahman Ali Saif, and
Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, who is also the
Ithmaar Bank Chief Executive Officer, builds on the joint BBK-Ithmaar Holding
statement made on 26 August 2020 announcing initial talks regarding the
potential acquisition.
The plans, which are
subject to shareholder and regulatory approvals, are still in the discussions
phase and subject to the completion of due diligence by both parties.
When implemented, the
plans will significantly expand BBK’s already large operations in Bahrain and
add a turn-key, full-service Islamic banking solution, while also bolstering
the already well established Ithmaar Bank brand and position it to better
capitalize on opportunities for growth. The plans are in line with Ithmaar
Holding’s strategy of creating value for its shareholders.
Details of the plans
will be announced in due course, following necessary approvals.
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