7th APRIL 2015 - Vol.XXXVIII No.018
Business News

Al Salam takes over Bahraini Saudi Bank

MANAMA: Al Salam Bank-Bahrain has succeeded in its takeover of Bahraini Saudi Bank (BSB).

Al Salam yesterday announced it has received acceptances from shareholders holding 451,789,210 shares representing 90.4 per cent of the issued and paid-up ordinary share capital.

The offer, for the outstanding shares, will remain open until Sunday.

"The level of acceptance is a clear indication of the high degree of trust and confidence of BSB shareholders in Al Salam Bank-Bahrain," said Al Salam Bank-Bahrain chief executive officer Yousif Taqi.

"This acquisition complements the business model of Al Salam Bank-Bahrain and fits with its intention to expand its retail and commercial banking presence in Bahrain.

"Al Salam Bank-Bahrain plans to maintain BSB's corporate legal status by expanding and consolidating the Al Salam Group's retail and commercial banking operations into BSB."

Following the acquisition, the group will have eight retail branches and 16 ATMs.

"This, coupled with Al Salam's online banking and Sharia-compliant product suite, will enable Al Salam Group to enhance visibility and expand its product and service delivery capabilities," Mr Taqi said.

"Since Al Salam Bank-Bahrain is an Islamic bank, the intention is to convene an extraordinary general assembly meeting of BSB and seek its shareholders' approval to convert the business operations of BSB into Sharia-compliant operations," he added.

"Subject to obtaining regulatory approvals, the retail commercial operations of the Al Salam Group are proposed to be carried out through BSB with the latter becoming the Bahrain-based retail and commercial banking arm of Al Salam Bank-Bahrain. Following the offer closing date, Al Salam Bank-Bahrain will start issuing allotment letters for the new shares to BSB shareholders who accepted and submitted their requests for share transfer.

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