NBK offer fair says Boubyan
Kuwait, June 20, 2012
The board of Kuwait's Boubyan Bank said a $2.1 billion offer by its main shareholder National Bank of Kuwait to take full control of the Islamic lender is 'fair and suitable', adding it hired an advisor to study the proposal.
Boubyan hired consulting firm Protiviti to advise on the transaction, it said in a bourse statement on Wednesday.
NBK, which owns a 47.29 percent stake in the Islamic lender, last week offered to pay 630 fils per share for the 52.7 percent of Boubyan it does not already own.
The proposed deal will give NBK a stronger position in the competitive Islamic banking market across the Gulf region. If the tie-up is completed, the combined entity would hold assets worth about $57 billion.
Boubyan shares were trading down 1.6 percent at 620 fils on the Kuwait bourse Wednesday. - Reuters