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Ithmaar sale of assets to Bank of Bahrain and Kuwait cancelled

July 7, 2021
banking

The planned sale of Ithmar Holding’s assets to Bank of Bahrain and Kuwait (BBK) has been cancelled, according to a bourse filing published on Tuesday.

The Bahrain-based holding company signed a memorandum of understanding with BBK last year for the potential sale of its subsidiary Ithmaar Bank.

The deal was supposed to include specific assets of another subsidiary, IB Capital, an Islamic investment firm.

In a new statement to the Bahrain Bourse and Dubai Financial Market, Ithmaar Holding said the transaction could not go through and the acquisition talks have been abandoned.

“Following preliminary due diligence and discussions, both parties could not agree on amicable terms and conditions that would maximise their shareholders’ interests,” Ithmaar said.

“Both parties have agreed to abandon all efforts in this connection.”

Ithmaar reported a net profit of $13.85 million for the three-month period ended March 31, 2021, compared to the net loss of $18.18 million for the same period in 2020.

The company attributed the positive financial results to the improvement in assets performance and lower impairment provisions.

zawya