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Bahrain's Ithmar Holding hires advisors for sale of subsidiary

October 15, 2020

Proposal to sell Ithmar Bank to Bank of Bahrain still subject to approvals

Ithmar Holding is set to kick off the review of the potential sale of its subsidiary to Bank of Bahrain (BBK), one of the largest commercial banks in the Gulf state.

In a bourse filing on Tuesday, the company said it is currently “in the process” of appointing advisors for the proposal.

The two firms executed last September a memorandum of understanding on the potential sale of Ithmar Bank’s Bahrain operations, as well as specific assets of IB Capital, a wholly-owned subsidiary of Ithmar Holding, to BBK.

“Additional material disclosures will be provided as and when they arise, in compliance with relevant rules and regulations,” said Ithmar Holding, the parent of Ithmar Bank, which operates the largest Islamic retail banking network in Bahrain.

It added that the impact of the move on its financial position has yet to be assessed.

The acquisition plan is subject to shareholder and regulatory approvals, and is still in the discussions phase and subject to the completion of due diligence by both parties.

Ithmar said the proposal is in line with its strategy of creating value for its shareholders. It is also expected to boost the Ithmar Bank brand and position it to better capitalise on growth opportunities.

If it pushes through, the sale will also expand BBK’s already large operations in Bahrain and add a turn-key full-service Islamic banking solution.