Octant sells 78% stake in Banif Bank Malta to Al Faisal Holding
Octant, the resolution fund vehicle that was created at the time of intervention in Banif in December 2015 and had inherited the Banif assets which were not purchased by Santander, concluded on Tuesday the sale of its stake of about 78% on the share capital of Banif Bank in Malta.
The sale was made to Al Faisal Holding International according to information provided by the management of Octant and reported in the Portuguese online portal Expresso.
In its statement Octant’s management said that “the outcome of this sale transaction occurs after all the conditions set out in the contractual documentation signed in December 2015 and subsequently amended in June 2016 have been checked, including obtaining authorisation by the Directorate general for Competition of the European Commission and the European Central Bank.”
In August Octant sold Banif Investment Bank to Bison Capital Financial Holdings (Hong Kong). The Chinese group increased the bank’s capital by €10 million and retained Banif Investment Bank employees.
The Al Faisal International Trade and Investment, a Qatari investment group, yesterday announced that it has acquired a 78.46% stake in Banif Bank Malta for an undisclosed amount. The group said this will be its first financial services investment in Europe but hoped that it will only be the first of many investments in the region.
The announcement was made at a press conference addressed by Prime Minister Joseph Muscat and Sheikh Faisal Bin Qassim Al Thani.
The Sheikh said Malta was chosen because it is developing at a fast pace and is well positioned in surrounding markets. “There is great potential for expansion. We have found strong support by the government and the people here. Malta is a good place to invest,” he said.
Dr Muscat said the Al Faisal group was one of the largest in Qatar and, indeed, the region. “This agreement has great strategic importance for us because Banif is the third largest player in our commercial banking sector. Banif needed new input and I am sure that, through this investment deal, the bank will take on a much more proactive role.”
The Prime Minister said he was confident that the new owners had a business outlook similar to that of the government. “This is also a signal that we are open to business from all parts of the world,” he said, referring to the recently announced investments from Jordan, Azerbaijan, China and the US.
The Sheikh’s son, who is a member of the group’s board, said Banif Bank Malta – a subsidiary of Banif Bank Portugal - has been operating since 2008 and has 12 branches and around 30,000 customers. The bank employs around 150 people in Malta.
While the share acquisition value was not disclosed, it was said that the remaining shareholding is equally split between four Maltese shareholders.
The investment deal will provide Banif Malta with additional capital and resources, allowing it to offer new services.