Taib sells 60pc stake
Manama, June 21, 2007
Dubai Financial, a subsidiary of state-owned Dubai Holding, has signed a stock purchase agreement to acquire a controlling 60 per cent stake in TAIB Bank, the group announced.
Taib Bank is one of Bahrain's fastest growing and most profitable investment banks, with a 20 per cent increase in profits to $22 million last year.
EFG Hermes acted as the sole financial adviser to Dubai on the transaction, which is still subject to the approval of Central Bank of Bahrain (CBB) and other regulatory authorities in the countries in which Taib's subsidiaries operate.
When the transaction closes, Dubai Financial will have control of the Taib board and Soud Baalawy, executive chairman of Dubai Group - the financial subsidiary of Dubai Holding and parent of Dubai Financial - will assume the role of chairman. Iqbal Mamdani will continue as vice-chairman and Taib chief executive.
'Taib has a proven track record and international reach in private banking and investment services, which can create tremendous value for all shareholders,' said Dubai Financial chief executive Sayanta Basu.
'Together, we can work to develop and enhance the capital markets sector in Bahrain, Dubai and the region.'
Following a repositioning of the bank three years ago, Taib chairman Abdulaziz Alrashed said the bank had been looking for a strategic partner.
Taib, which was founded as a private bank in Bahrain in 1979, has increasingly been focusing on emerging markets such as Turkey, India and Kazakhstan, as well as the GCC region. TradeArabia News Service