Ith­maar propos­ing to sell take in BBK

Banking Frontiers - - News / Banking In The Gulf -

Bahrain’s Ith­maar Hold­ing is propos­ing to sell its 25.4% stake in Bank of Bahrain and Kuwait (BBK). The stake is valued at about $250 mil­lion. Ith­maar Hold­ing is in­ter­ested in of­fer­ing the stake only to strate­gic in­vestors. It also owns con­vert­ible bonds sold by BBK, which would make the deal size even higher. It is now working with an in­vest­ment bank on the trans­ac­tion and has also talked to other banks. The sale could be com­plex be­cause the Cen­tral Bank of Bahrain is un­likely to al­low pri­vate equity firms to bid for the stake, while banks will weigh it care­fully be­cause hav­ing mi­nor­ity stakes is seen as puni­tive for cap­i­tal un­der Basel 3.

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