MANAMA: Mahmood Rafique Editor: National Bank of Bahrain (NBB) bid to acquire 100 per cent of Bahrain Islamic Bank (BisB) will give new impetus to BisB, thanks to the strong base of NBB.
National Bank of Bahrain BSC (NBB, B2 stable, b2) announced on the Bahrain Bourse that it had submitted a voluntary conditional offer to acquire up to 100% of Bahrain Islamic Bank BSC (BISB, B2 stable, b2) through a share swap or cash offer.
Moody’s says if concluded, the deal would be credit positive for BisB because it would give the bank access to NBB’s strong capitalization, ample liquidity and a large customer base.
NBB is one of the largest retail banks in Bahrain, with around a 12% market share by total system assets, and is largely owned by the government of Bahrain (55% through a sovereign wealth fund and a social insurance organization).
NBB also is the single largest shareholder in BisB with a 29% stake (the government also indirectly owns a 29% stake thorough a social insurance organization). This ownership structure could potentially simplify the deal’s conclusion, although there are no guarantees that will be the case.
