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 (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.