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

Kuwait Times - - BUSINESS -

Bahrain-based Bank Alkhair, a lead­ing Is­lamic whole­sale bank, an­nounced yes­ter­day 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 5 Septem­ber 2016 of the ap­proval of share­hold­ers to the merger of Pakistan’s Burj Bank and ABPL, cre­at­ing an in­sti­tu­tion with as­sets to­tal­ing more than $1.1 bil­lion. The amal­ga­ma­tion was ap­proved by the State Bank of Pakistan and has be­come ef­fec­tive since 31 October 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.’’ Bank Alkhair is an Is­lamic whole­sale bank li­censed by the Cen­tral Bank of Bahrain with an in­ter­na­tional pres­ence in Saudi Ara­bia, Dubai, Malaysia and Tur­key. Bank Alkhair has com­pleted sev­eral land­mark trans­ac­tions since its in­cep­tion, in­clud­ing the es­tab­lish­ment of t’azur, a re­gional Taka­ful com­pany and the ac­qui­si­tion of Bahrain Fi­nanc­ing Com­pany, the old­est and one of the lead­ing for­eign ex­change and re­mit­tance houses in the GCC.

Sub­sidiaries of Bank Alkhair in­clude: Alkhair Capital Tur­key’s oper­a­tions which con­tinue to com­ple­ment Bahrain’s in­vest­ment bank­ing business. In Saudi Ara­bia, Alkhair Capital Saudi Ara­bia con­tin­ues to re­volve around the three core business lines: As­set Man­age­ment; In­vest­ment Bank­ing and Bro­ker­age. In Malaysia, Alkhair In­ter­na­tional Is­lamic Bank, the bank’s Capital Mar­kets divi­sion con­tin­ues to fo­cus its strategy on main­tain­ing an op­ti­mal as­set mix and gen­er­at­ing in­come from fee-based trans­ac­tions.

Ay­man Se­jiny CEO of Bank Alkhair

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