Dubai agrees to buy 37pc of Bahrain's TAIB
Dubai, July 30, 2007
Government-owned Dubai Financial said on Monday it had agreed buy around 37 percent of Bahrain's TAIB Bank and was looking to raise its stake to 60 percent.
Dubai Financial's parent Dubai Holding said on June 20 it had bought 60 percent of TAIB for an undisclosed sum. Monday's statement did not explain the discrepancy.
Dubai Financial reached an agreement with TAIB's three biggest shareholders to buy 60 percent of their stock, it said in a statement on the Bahrain bourse Web site.
The three investors own 62 percent of TAIB's shares and will not be allowed to sell the rest of their shares for two years, Dubai Financial said.
Dubai Financial will offer other TAIB shareholders $2.73 per share to raise its stake in the bank to 60 percent, it said in a statement on the Bahrain stock exchange Web site. Investors owning TAIB stock on May 31 are eligible for the offer.
TAIB's shares closed at $1.60 per share on May 14, the last day of trading before they were suspended for the takeover announcement.
Dubai Financial Chief Executive Sayanta Basu could not immediately be reached for comment.
Dubai Holding said in June that Soud Ba'alawy, executive chairman of its Dubai Group subsidiary would become chairman of TAIB's board.
TAIB, established as a private bank in Bahrain in 1979 and listed on the bourse since 1994, specialises in wealth management and investment banking. - Reuters