Karachi February 7 2022: Al Salam Bank ("Al Salam Bank") (Bahrain Bourse Trading Code "SALAM", Dubai Financial Market Trading Code "SALAM_BAH") and Ithmaar Holding B.S.C. ("Ithmaar Holding") (Bahrain Bourse and Dubai Financial Market Trading Code "ITHMR") have agreed the acquisition by Al Salam Bank of the consumer banking business of Ithmaar Bank (a wholly owned subsidiary of Ithmaar Holding), and Ithmaar Holdings' ownership stake in both Bank of Bahrain and Kuwait B.S.0 (BBK) (Bahrain Bourse "BBK"), and Solidarity Group Holding, one of the largest takaful groups globally and the parent of Solidarity Bahrain (Bahrain Bourse Trading Code "SOLID").
This announcement follows the execution of a memorandum of understanding between the two entities on October 2021. The transaction remains subject to the approval of Ithmaar Holding's shareholders and the signing of definitive agreements.
"This transaction with Al Salam Bank is in line with Ithmaar Holding's long-standing strategy of creating value for its shareholders by delivering synergies within its portfolio holdings. Following the transaction, Ithmaar Holding will continue to hold a well-diversified portfolio of international and local financial and other assets which includes banking businesses in Bahrain and Pakistan"says HRH Prince Amr Al Faisal, the Chairman of Ithmaar Holding
Ithmaar Bank, an integral player in the development of Islamic finance in Bahrain and the wider region, will remain to be a wholly-owned subsidiary of Ithmaar Holding and will continue its journey as an innovative and agile Sharia compliant banking institution post this strategic transaction maintaining its banking operations as a licensed Islamic bank regulated by the Central Bank of Bahrain, focusing on corporate banking and related services.
Furthermore, it is noted that the above-mentioned transaction, did not include the shares of Faysal Bank Ltd., held by Ithmaar Bank BSC and as such the transaction will not affect the ultimate beneficial ownership of Faysal Bank Ltd.