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Al Salam-BMI conclude business combination

February 5, 2014

MANAMA : Al Salam Bank Bahrain (ASBB) and BMI Bank have concluded combination of their business after shareholders of both entities approved it. In a joint statement, Al Salam Bank said it would be issuing 643,866,927 new ordinary shares at a face value of 100 fils to BMI Bank shareholders. The business combination is based on the agreed exchange ratio of 11 ASBB shares for every BMI Bank share, resulting in ASBB issuing 643,866,927 new ordinary shares. ASBB chairwoman Shaikha Hessa bint Khalifa Al Khalifa said the legal formalities will be concluded once new ASBB shares are issued to BMI Bank shareholders. BMI Bank chairman Shaikh Khalid bin Mustahail Al Mashani thanked the shareholders for their approval to proceed with the business combination. The combined entity will benefit from stronger capital base, expanded customer portfolio, unique products and services in addition to expanded branch and ATM network. In a separate statement, Al Salam Bank yesterday reported an increase of 20 per cent in net profit at BD12.4 million ( $32.9m ) for last year when compared with BD10.3m achieved in 2012. For the fourth quarter of last year, the net profit was BD3.2m when compared with BD4.2m for the same period in 2012. The bank's total assets grew 15pc to BD1,088.2m as of December 31 , last year when compared with BD942.2m at December 31, 2012 . Customer deposits increased 9pc from BD624.1m to BD680.7m in the same period. The board of directors in a meeting held on January 30 recommended a cash dividend of five fils per share. This is subject to approval by shareholders in the annual general meeting scheduled for March 3 .

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Source: Gulf Daily News (Bahrain)

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