Bloomberg/Christopher Pike
by Kudakwashe MuzoriwaDubai Islamic Bank’s (DIB) Board of Directors has approved proposed terms of the proposed merger with privately-owned Noor Bank.
In a bourse filing, DIB stated that the board approved a share swap that will see it offering one new share in DIB for every 5.49 Noor Bank shares and the deal will be satisfied through the issuance of 651 million new DIB shares.
The Shari'ah-compliant banks have a common shareholder in the form of Investment Corporation of Dubai, the state investor fund that owns a 28.4 per cent stake in DIB and 23.9 per cent of Noor Islamic Bank. The UAE government also owns a 4.42 per cent stake in Noor Bank through the Emirates Investment Authority.
The acquisition would create a lender with AED 277 billion ($75 billion) in assets.
The GCC financial services industry is witnessing a wave of consolidation as banks seek ways to improve competitiveness and boost capital amid slowing economic growth.
The government is in the process of merging the Abu Dhabi Commercial Bank (ADCB), United National Bank (UNB) and Al Hilal Bank following the successful tie-up of its two major banks after combining two of biggest lenders in 2017.
Additionally, banks in Saudi Arabia, Kuwait and Bahrain are also holding merger talks.
Investment Corporation of Dubai is the largest shareholder in DIB with a 28 per cent stake and it is also one of the biggest investors in Noor Bank, a lender that was established in 2008.
The bank reported a one per cent year-on-year increase in profits in the three months to 30 September 2019 of almost AED 1.25 billion and its profit for the nine-month period grew 10 per cent to AED 3.97 billion.
MOST READ
BUSINESS
Fed rate cuts add pressure on Saudi banksBUSINESS
ING Groep plans to sell its Turkish unitBUSINESS
Bahrain considers stake sell in oil assetsBUSINESS
SABB seeks to boost corporate lendingBUSINESS
Dubai’s W Motors seeks funds to go electricBUSINESS
HSBC considering exiting from TurkeyBUSINESS
Zimbabwe turns to UAE to sell a stake in...BUSINESS
ADIA plans to sell a $2 billion stake in...BUSINESS
Amanat considers stake in VPS HealthcareBUSINESS
ECI, HSBC partner to support UAE businessesBUSINESS
Saudi Arabia’s NCB, Riyad Bank end merger talksBUSINESS
National Bank of Oman to exit from EgyptBUSINESS
DAMAC Chairman acquires Italy’s Roberto CavalliBUSINESS
DIEDC expands network of partners in IndonesiaBUSINESS
ADIB seeks to increase foreign ownership limitBUSINESS
HSBC, Emirates NBD cut jobs in UAE as banks...BUSINESS
Salt Bae backers seek a partner and a $1...BUSINESS
KIZAD, ECI partner to support UAE businessesBUSINESS
UAE plans to loosen cap on bank lending to...
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
