Dubai Financial, the financial holding company for Dubai Group, has announced that it has signed a stock purchase agreement (SPA) to acquire a controlling 60 percent stakes in Taib Bank, the Bahrain-based investment bank engaged in private banking and wealth management services.
EFG Hermes acted as the sole financial advisor to Dubai Financial Group in this transaction. Under the terms of the agreement, Dubai Financial has agreed to acquire 60 percent of the shares held by each shareholder of Taib. The transaction is subject to the approval of the Central Bank of Bahrain and other regulatory authorities in the countries in which Taib's subsidiaries operate.
The transaction will close following the receipt of regulatory clearance. When the transaction closes, Dubai Financial will have control of the Taib Board and Soud Ba'alawy, Executive Chairman of Dubai Group, will assume the role of the Chairman. Iqbal G. Mamdani will continue as the Vice-Chairman and Chief Executive Officer of Taib.
Dubai Financial Chief Executive Officer (CEO) Sayanta Basu said: "Taib has a proven track record and international reach in private banking and investment services, which can create tremendous value for all shareholders. "Together, we can work to develop and enhance the capital markets sector in Bahrain, Dubai and the region," he said.
Taib Bank Chairman Abdul Aziz R. Alrashed said: "After the repositioning of the bank three years ago, we realised the need for a sound and strategic partner to serve the bank's best interests. Our alliance with Dubai Financial will bring greater synergy and strengthen our existing businesses.-PR
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