Al-Ahly and the Gulf countries sign a memorandum of understanding to implement
  • Behbehani: Helps develop performance, increase revenues, and enhance shareholders’ equity
  • Boodai: We are keen to study all available opportunities that achieve the interests of all shareholders

Al Ahli Bank of Kuwait and Gulf Bank signed a memorandum of understanding to start studying the acquisition proposal of one of the two banks over the other, with the possibility of converting one of them into a Sharia-compliant bank.

The agreement referred to the formation of a joint steering committee that meets periodically, and among its tasks is to facilitate and assist in obtaining any internal approvals required for the deal, and to consider other substantive matters, including the selection and appointment of the necessary advisors to provide advice for the benefit of both parties, after obtaining the necessary approvals.

For his part, Talal Behbehani, Chairman of the Bank’s Board of Directors, said: In light of the rapid developments taking place in the banking sector at the local and global levels, we found it appropriate to consider studying the proposal submitted by the two major shareholders of the two banks regarding the acquisition of one of the two banks over the other with the possibility of converting one of them into a bank. An Islamic Shariah-compliant law, and to explore opportunities for joint cooperation between the two banks in a way that enhances their prestigious and distinguished position.

He pointed out that both Al Ahli Bank of Kuwait and Gulf Bank enjoy many advantages that make the implementation of the acquisition deal a qualitative leap that will help develop performance, increase revenues, and enhance shareholders’ rights and market shares for each of them.

Jassim Mustafa Boodai, Chairman of Gulf Bank, said: “The MoU that was signed represents the first organizational steps taken by the two banks to consider joint cooperation between them in order to complete the potential acquisition deal with the aim of facilitating and expediting the necessary procedures to reach the final agreement.

Boodai affirmed the Gulf Bank’s board of directors’ keenness to study all available opportunities that would achieve the interest of all shareholders, and to disclose all steps and procedures taken in this transaction in all transparency, noting that the final approvals related to the joint cooperation project with Al Ahli Bank of Kuwait are subject to the approval of the Bank’s General Assembly. and regulatory authorities in Kuwait.

It is noteworthy that the boards of directors of both banks had agreed earlier to start the due diligence work and obtain the required approvals from the Central Bank of Kuwait and the regulatory authorities regarding joint cooperation and the proposed acquisition deal between them.

By Editor

Leave a Reply