GFH set to take over Khaleeji

Bahrain investment bank Gulf Finance House (GFH) is in the final stretch to pick up full ownership of Khaleeji Commercial Bank, in what will be one of the bigger consolidations within the Gulf’s finance sector this ear.

GFH will pick up the remaining 21.03 per cent stake in Al Khaleeji — which too is based in Bahrain — not owned by it through a share swap arrangement. This will be done through buying 187.58 million shares.

“GFH intends to maintain KHCB’s vocation as an Islamic retail bank,” it said in a statement. “KHCB will continue to operate under its normal course of business and maintain its operations as a subsidiary of GFH.”

KHCB will provide GFH with a wider segment of clients and allow for a bigger market share. The commercial banking credentials that KHCB brings provides “stability” to GFH’s profitability and risk profile, and which is why the deal is considered a “key pillar” to GFH’s strategic growth plan.