National Bank of Bahrain (NBB) has made an offer to acquire the entire stake in local Shariah-compliant lender Bahrain Islamic Bank.
The move comes a year after NBB announced its intention to buy Bahrain Islamic Bank (BisB).
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The deal is subject to NBB acquiring 40.94% of BisB for BHD0.117 cash or through a share swap of 0.167 NBB shares for one BisB share, Reuters said citing BisB exchange filing.
The offering values the Shariah-compliant bank at $329m, the report added.
Currently, NBB holds a 29% stake in BisB as its second largest shareholder after the government.
Set up in 1957, NBB is the first locally owned bank. It offers personal and business banking services through a network of 27 branches and 92 ATMs.
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By GlobalDataPrivate and institutional shareholders own 44.94% in the bank, while government-owned Bahrain Mumtalakat Holding Company holds 44.18%. The remaining 10.88% stake is with Social Insurance Organization.
Recently, several banks in the Gulf region are working to consolidate their business due to shrinking profits and oil market fluctuations.
In September this year, Kuwait Finance House placed an $8.8bn offer to acquire Bahrain’s Ahli United Bank (AUB). The transaction will be carried out through a share swap deal.
Earlier this year, three Abu Dhabi-based lenders merged to create the third largest lender in the UAE. The merger of Abu Dhabi Commercial Bank with Union National Bank and Al Hilal Bank created a lender with $115bn in assets.
