TAIB taker over by Dubai firm closer
Manama, September 11, 2007
Bahrain's TAIB Bank is a step closer to being taken over by Dubai Financial, after it was announced yesterday that investors holding at least 60 per cent of the bank's stock had agreed to sell their shares.
The purchase is worth about $175 million, based on the $2.73 per share the Dubai Financial said in July it was prepared to pay and outstanding shares of 107.01 million, Reuters said.
"Dubai Financial will proceed with the purchase of 60 per cent or more of the TAIB shares as all eligible and valid shareholder applications have been accepted by Dubai Financial," the emirate-owned firm and unidentified "key" shareholders said in a statement posted on the Bahrain Stock Exchange website.
TAIB, established as a private bank in Bahrain in 1979 and listed on the bourse since 1994, specialises in wealth management and investment banking.
Dubai Financial, a part of Dubai Group, said in July it had agreed to buy around 37pc of TAIB Bank and was looking to raise its stake to 60pc.
Dubai Financial, which last month agreed to buy 15pc of Oman's Bank Muscat for $619 million, had agreed with TAIB's three biggest shareholders to buy 60pc of their stock in the lender.
The three investors owned 62pc of TAIB shares. Dubai Financial said it would offer other TAIB shareholders $2.73 per share to raise its stake to 60pc.
TAIB Bank vice president Aseesh Goel told the Gulf Daily News, our sister newspaper, yesterday the sale was good for the bank.
"This is a positive move for TAIB Bank - it will be part of Dubai Financial, and Dubai Financial is a big name," he said.
"The offer was given sometime back by Dubai Financial to our shareholders, the shareholders have responded and the applications have been accepted by Dubai Financial and now we are waiting for the regulator's approval," he added.-TradeArabia News Service
More Finance & Capital Market Stories
- Saudi inflation plunges to four-year low
- UAE investment appetite 'strengthens' says expert
- Dubai mulls rule change to woo domiciled funds
- UAE, Abu Dhabi roll over $20bn of Dubai's debt
- Saudi can achieve 4.4pc growth this year
- Emaar listing of retail unit 'within months'
- Dubai Investments nets $29m profits
- Compliance officers facing diverse pressures, says study
- Abu Dhabi finance dept inks deal with Ajman
- Kuwait registers 8pc credit growth
- Bahrain Sico funds net solid returns
- Emaar proposes 15pc cash dividends
- ABG units win top Islamic finance award
- Finance House approves 25pc cash dividends
- Qatar 'most expensive country in Gulf'
- Egypt regulator sets rules for index
- Dubai Islamic eyes Kenya, Indonesia for expansion
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m