Bank Alkhair announces sale of its major stake in Pakistan’s Burj Bank

Bahrain-based Bank Alkhair, a leading Islamic wholesale bank, announced today that the bank has obtained approval from the State Bank of Pakistan to sell its stake in Pakistan’s Burj Bank to Al Baraka Pakistan Limited (ABPL), a subsidiary of Al Baraka Banking Group.

Prior to the transaction, Bank Alkhair was Burj Bank’s major shareholder, followed by Jeddah-based Islamic Corporation for Development of the Private Sector with 33.9 per cent of shares.

This transaction follows the announcement on Sept 5, 2016 of the approval of shareholders to the merger of Pakistan’s Burj Bank and ABPL, creating an institution with assets totalling more than US$1.1 billion. The amalgamation was approved by the State Bank of Pakistan and has become effective since Oct 31, 2016.

Burj Bank is a Pakistani Islamic bank, headquartered in Karachi. It currently operates a total of 74 branches and provides a full range of Shariah-compliant banking services. Bank Alkhair acquired a 22.2 per cent equity stake in Pakistan’s Burj Bank (formerly Dawood Islamic Bank), a Shariah-compliant commercial bank, in June 2006. In March 2009, Bank Alkhair increased its equity stake in the bank to 37.9 per cent.

Commenting on the announcement, Ayman Sejiny, Group CEO of Bank Alkhair said: “At Bank Alkhair, we actively manage our investment portfolio to ensure that our investments support the company’s strategic direction. In keeping with this we are pleased to sell our stake in Pakistan’s Burj Bank to Al Baraka Pakistan Limited, a subsidiary of Al Baraka Banking Group, a leading Islamic bank in Bahrain.’’