Al Salam Bank B.S.C — M&A Activity 2021

Oct 3, 2021

==> picture [181 x 73] intentionally omitted <==

Al Salam Bank-Bahrain Commences Discussions With Ithmaar Holding for the Potential Acquisition of a Group of Assets

3 October 2021, Manama, Kingdom of Bahrain

Al Salam Bank-Bahrain B.S.C. ("Al Salam Bank") (Bahrain Bourse Trading Code "SALAM", Dubai Financial Market Trading Code "SALAM_BAH") has signed a memorandum of understanding and entered into discussions with Ithmaar Holding B.S.C. ("Ithmaar Holding") (Bahrain Bourse and Dubai Financial Market Trading Code "ITHMR"), the parent of Ithmaar Bank B.S.C.(c), for the potential acquisition by Al Salam Bank of a group of assets from Ithmaar Holding’s group of companies.

Al Salam Bank is keen to maintain its growth trajectory and these discussions with Ithmaar Holding on a potential group of assets would complement Al Salam Bank's existing business lines. The potential acquisition will be subject to the completion of successful due diligence, the agreement of terms between both parties, and the receipt of all necessary regulatory and corporate consents.

H.E. Shaikh Khalid bin Mustahil Al Mashani, the Chairman of Al Salam Bank – Bahrain, said, “Al Salam Bank has a robust track record in the M&A space evidenced by the successful acquisition and integration of Bahrain Saudi Bank in 2009 and BMI Bank in 2014. As part of our continuous efforts to explore expansion venues, Al Salam Bank is pleased to announce the signing of a memorandum of understanding and the commencement of discussions with Ithmaar Holding, a banking peer in Bahrain who has a rich history spanning almost four decades. Further cementing Al Salam Bank’s position as a leading financial institution in Bahrain, these discussions are earmarked to supplement the recently approved three-year strategy, accelerate Al Salam Bank’s growth trajectory, and further enhance our market positioning.”

HRH Prince Amr Al Faisal, the Chairman of Ithmaar Holding said, “Ithmaar Holding holds a well-diversified portfolio of financial assets which includes retail banking businesses in Bahrain and Pakistan, major Takaful operations and significant real estate assets. The discussions with Al Salam Bank are in line with Ithmaar Holding’s long-standing strategy of creating value for its shareholders, and we are pleased to sign this memorandum of understanding. This potential transaction will have a significant positive impact on Bahrain’s national economy and reinforce the Kingdom’s position as a key regional Islamic banking hub.”

– Ends –

==> picture [181 x 73] intentionally omitted <==

About Al Salam Bank

Al Salam Bank is a leading regional Islamic bank headquartered in the Kingdom of Bahrain and is licensed and regulated by the Central Bank of Bahrain. It offers a comprehensive range of innovative and unique Shari’a-compliant financial products and services through its extended network of branches and ATMs utilizing the state-of-art technology to meet various banking requirements. In addition to its retail banking services, the Bank also offers corporate banking, private banking, and investment as well as treasury services.

About Ithmaar Holding:

Ithmaar Holding B.S.C. (“Ithmaar Holding or Ithmaar”) is licensed as an investment firm and regulated by the Central Bank of Bahrain (CBB) and is listed on the Bahrain Bourse and Dubai Financial Market.

Ithmaar Holding owns two wholly-owned subsidiaries Ithmaar Bank B.S.C (closed) (Ithmaar Bank), an Islamic retail bank subsidiary which holds the core retail banking business, and IB Capital B.S.C. (closed) (IB Capital), an investment firm subsidiary, which holds investments and other non-core assets. The two subsidiaries are licensed and regulated by the CBB.

Ithmaar Bank provides a diverse range of Sharia-compliant products and services that cater to the financing and investment needs of individuals and institutions. Ithmaar also maintains a presence in overseas markets through its subsidiary, Faysal Bank Limited (Pakistan) and locally through Dilmunia Development Fund I L.P.

IB Capital maintains a presence in regional and overseas markets through its investments including in associated companies. These include Bahrain-based BBK, Ithmaar Development Company Limited, Solidarity (an Islamic insurance company) and Naseej.