MANAMA, 21 June 2007 — Dubai Financial, the financial holding company for Dubai Group, signed a stock purchase agreement (SPA) to acquire a 60 percent stake in TAIB Bank, the Bahrain-based investment bank engaged in private banking and wealth management services.
In a statement yesterday, Dubai Financial 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.”
EFG Hermes acted as the sole financial advisor to Dubai Financial Group in this transaction.
The transaction is subject to the approval of Central Bank of Bahrain and other regulatory authorities in the countries in which TAIB’s subsidiaries operate. It will close following the receipt of regulatory clearance.
When the transaction closes, Dubai Financial will have control of TAIB board and Soud Ba’alawy, executive chairman of Dubai Group, will become the chairman. Iqbal G. Mamdani will remain as vice chairman and chief executive officer of TAIB.
Abdul Aziz R. Alrashed, chairman of TAIB Bank, said: “After the repositioning of the bank three years ago, we realized 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.”
Mamdani said “our track record, expansive footprint and brand equity have helped us in our consistent growth. These attractive fundamentals have resulted in a strategic alliance with Dubai Financial. We will build on this partnership with our extensive service offered to high net worth individuals and institutions in the GCC region.”
Dubai Financial focuses on identifying and acquiring financial services companies, as well as in building long-term value through state-of-the-art governance. TAIB’s long-term strategy, over the last 27 years, has helped the bank to focus on countries with greater growth potential such as Turkey, India and Kazakhstan, as well as the GCC region.