GFH Financial Group, an investment bank based in Bahrain, plans to acquire 100 per cent of Khaleeji Commercial Bank (KHCB) to boost its portfolio and expand its operations, it said in a regulatory filing on Sunday.
The Bahrain lender submitted an offer to the board of KHCB to acquire 21.03 per cent of the its shares, which it currently does not own, by way of shares exchange, GFH said in a statement to Dubai Financial Market, where its shares are traded.
“GFH intends to maintain KHCB's commercial registration and vocation as an Islamic retail bank,” GFH said. “KHCB will continue to operate under its normal course of business and maintain its operations as a subsidiary of GFH.”
GFH, which has more than $12 billion in assets and funds under management, increased its shareholding in KHCB earlier this year to more than 69 per cent after it bought shares from Dubai-based Shuaa Capital and the Goldilocks Fund, which is managed by a Shuaa subsidiary.
GFH bought Shuaa Capital’s direct 3.8 per cent stake in KHCB and its 9.76 per cent indirect shareholding from the Goldilocks fund, equal to more than 87 million shares.
The Bahrain-based Sharia compliant lender, which owned a 55.41 per cent stake in KHCB before the deal, paid more than 8.76 million Bahraini dinars ($23.3m) for Shuaa's combined shareholding, it said in June.
GFH's latest offer will be put into effect by way of a voluntary conditional offer to the shareholders of KHCB in line with the provisions of the Takeovers, Mergers and Acquisitions Module, it said.
If the Bahraini lender secures a shareholder acceptance of 90 per cent to acquire KHCB shares, then it intends “to exercise any rights of compulsory acquisition, which may become available to it”, it said.
“The remaining shareholders, who have not accepted the acquisition offer, shall be obliged to sell their shares to GFH in no later than three months from the date of GFH having obtained 90 per cent or more acceptances.”
Banks in the GCC are looking to merge or take over other financial institutions to gain scale and expand their footprint as regional economies emerge from the coronavirus-induced economic slowdown.
The acquisition of KHCB “will provide GFH with access to a wider segment of clients and allow for a bigger market share”, it said.
“Commercial banking provides stability to GFH’s profitability and risk profile and, hence, is considered a key pillar to GFH’s strategic growth plan.”
GFH more than doubled its net profit for the second quarter of 2021, driven by growth across its business units despite the lingering effects of the Covid-19 pandemic.
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Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
Company%20profile
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OPINIONS ON PALESTINE & ISRAEL
Tell-tale signs of burnout
- loss of confidence and appetite
- irritability and emotional outbursts
- sadness
- persistent physical ailments such as headaches, frequent infections and fatigue
- substance abuse, such as smoking or drinking more
- impaired judgement
- excessive and continuous worrying
- irregular sleep patterns
Tips to help overcome burnout
Acknowledge how you are feeling by listening to your warning signs. Set boundaries and learn to say ‘no’
Do activities that you want to do as well as things you have to do
Undertake at least 30 minutes of exercise per day. It releases an abundance of feel-good hormones
Find your form of relaxation and make time for it each day e.g. soothing music, reading or mindful meditation
Sleep and wake at the same time every day, even if your sleep pattern was disrupted. Without enough sleep condition such as stress, anxiety and depression can thrive.
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
