MANAMA: The consolidation of the banking industry will create much stronger players in the region, a leading banker and a major UAE investor said on Monday. “We are living in the age of competition and mergers and acquisitions as part of consolidation would create robust financial institutions,” Mohammed Ali Alabbar, chairman of Al-Salam Bank said yesterday.
Alabbar was talking to reporters on the sidelines of the extraordinary general meeting (EGM) of Al-Salam Bank shareholders held at the Ritz-Carlton Hotel.
Majority of the shareholders approved the proposed takeover of the Bahrain Saudi Bank (BSB), subject to regulatory approvals.
The shareholders also approved the increase of authorized share capital from 1.2 billion Bahraini dinar to 2 billion dinar, which is aimed at increasing the financial base of the bank. “Today’s approval by the Al-Salam shareholders means that we are one step away from taking over the Bahrain Saudi Bank. We offer the best possible price to BSB shareholders and it is up to them to accept it,” said Yousif Abdullah Taqi, CEO of Al-Salam Bank. “Al-Salam is to acquire all the issued shares and the fully paid up ordinary shares of BSB consisting of 500 million shares worth 100 fils each,” Taqi added.