19th January 2020

Success of National Bank of Bahrain B.S.C.'s offer to acquire up to 100% of the issued and paid up ordinary shares of Bahrain Islamic Bank B.S.C.

NBB announced the results of its Offer to acquire up to 100% of the paid up ordinary shares of BisB. Acceptances were received in respect of 529,424,282 ordinary shares of BisB which, on completion of settlement, will result in NBB owning a controlling stake of 78.8% of BisB, up from its 29.06 % pre-transaction stake. 93.55% of the acceptances were from institutional shareholders of BisB and the remaining 6.45% were from individual shareholders. 94.95% of all acceptances opted for the cash offer of BHD 0.117 per BisB share, while the remaining 5.05% opted to swap their BisB shares with newly issued shares of NBB at a share exchange ratio of 0.167 NBB shares per BisB share.

  • NBB’s offer for BisB closed successfully on 15th January 2020
  • NBB’s total shareholding of BisB to reach 78% on the Settlement Date
  • This successfully concludes a significant consolidation in the Bahraini banking sector
  • The broadened group will be ideally positioned in both conventional and Islamic banking

Image removed. Image removed.

The Offer which initially opened on 18 December 2019 was launched by NBB as part of its efforts to develop further its Islamic Banking activities and to offer to its client base a full range of banking services both conventional and Islamic

The transaction is expected to strengthen both the NBB and BisB brands, which will continue to operate as two independent banks, in the local and regional markets. It is also expected to result in asset, revenue, cost, operational and other synergies that are expected to enhance returns.

Speaking of this transaction, Mr. Farouk Yousuf Khalil AlMoayyed, Chairman of NBB, said, ‘NBB has always been keen on diversifying its offering portfolio and developing its capabilities to capture business opportunities locally and regionally. This decision was a result of our strategic vision for the business and reinforcing our group’s presence in the Islamic Banking market. BisB has played a pivotal role in the development of the Islamic Banking sector in the Kingdom of Bahrain and following continuous screening opportunities we chose what we believe would strengthen our position in the industry. Increasing our shareholding in BisB will allow us to become more effective in certain markets, especially where Sharia-compliant businesses play a vital role in.”

Further commenting on the acquisition, Jean-Christophe Durand, CEO of NBB, said, “We are very pleased with the success of our Offer. It gives us significant control of BisB and will allow us to implement our strategic vision for a more integrated banking group. We expect the acquisition of BisB to generate significant synergies, improved efficiencies and contribute to profitability. While the two banks will remain independent, I look forward to working with the teams of both banks on the successful implementation of synergies in full respect of the culture of the two institutions.”

Settlement of the offer is expected to take place on 22 January 2020. Participating BisB shareholders who opted for the cash offer shall be paid either by wire transfer to the account designated on their acceptance forms or by cheque which will be available for collection from 22 January 2020 from NBB’s head office.  Shareholders of BisB accepting the share exchange offer can collect their NBB share exchange allotment notices from the offices of Bahrain Clear from 22 January 2020.

BisB will continue to operate under its normal course of business and maintain its operations as a subsidiary of NBB. BisB will continue to be listed on Bahrain Bourse subject to any compulsory acquisition and delisting regulations which may apply. BisB will recommence trading on 23 January 2020.

All BisB shareholders who did not participate in the Offer will remain as shareholders of BisB with their shareholding unchanged as a result of the Offer.

Latest News

NBB Offers Cash Prizes During Bahrain Sports Day Event as Part of Thara’a Prize Campaign
NBB Offers Cash Prizes During Bahrain Sports Day Eve…

Read More
As the First and Only Bank to Support the Green Factory Seal Programme NBB Signs MoU with the MOIC to Promote Sustainable Industrial Practices
As the First and Only Bank to Support the Green Fact…

Read More
NBB Supports MIT - Harvard Architecture Workshop Led by Bahraini Academics
NBB Supports MIT - Harvard Architecture Workshop Led…

Read More
NBB Launches the Kingdom’s First Mortgage Offering with Integrated Solar Financing
NBB Launches the Kingdom’s First Mortgage Offering w…

Read More
NBB to Participate in the 3rd Housing Finance Exhibition 2024
NBB to Participate in the 3rd Housing Finance Exhibi…

Read More
NBB Signs MoU with Al Janabiya Gate Real Estate to Provide Exclusive Offers for Customers
NBB Signs MoU with Al Janabiya Gate Real Estate to P…

Read More
NBB Attends Crown Prince International Scholarship Programme’s 25th Anniversary Event
NBB Attends Crown Prince International Scholarship P…

Read More
**Set to Have the Largest Prize Draws in the History of the Bank** NBB’s New Thara’a Account Offers Exclusive Prizes
**Set to Have the Largest Prize Draws in the History…

Read More
Maki Mohamed & Sayed Jaffar Shubbar Win NBB’s 2023 Dream Prize of $1,000,000 Each
Maki Mohamed & Sayed Jaffar Shubbar Win NBB’s 20…

Read More
NBB Receives Two Prestigious Awards at Ministry of Labour and Social Development's Distinguished Employees & Outstanding Entities Ceremony 2023
NBB Receives Two Prestigious Awards at Ministry of L…

Read More
NBB Launches New ‘Top-Up Your Personal Finance’ Campaign
NBB Launches New ‘Top-Up Your Personal Finance’ Camp…

Read More
NBB Launches Exclusive Offer ‘Transfer Your Mortgage Finance’
NBB Launches Exclusive Offer ‘Transfer Your Mortgage…

Read More
NBB Partners with ASK Real Estate to Provide Financing for Beaut Budaiya Property Buyers
NBB Partners with ASK Real Estate to Provide Financi…

Read More
NBB Group Holds ‘Innovation Challenge’ Internal Competition for Employees
NBB Group Holds ‘Innovation Challenge’ Internal Comp…

Read More
NBB and Bapco Energies Announce First ESG-Linked Interest Rate Swap in Bahrain
NBB and Bapco Energies Announce First ESG-Linked Int…

Read More
NBB’s Zied Jalali Highlights NBB’s Role in Climate Action during a Panel at COP28
NBB’s Zied Jalali Highlights NBB’s Role in Climate A…

Read More
NBB Delegation Attends COP28 in Dubai
NBB Delegation Attends COP28 in Dubai

Read More
NBB Launches ‘Transfer Your Finance’ campaign with Rewards
NBB Launches ‘Transfer Your Finance’ campaign with R…

Read More
NBB Supports Friendship Society for the Blind’s Nursery Renovation
NBB Supports Friendship Society for the Blind’s Nurs…

Read More
Mohd Hassan Al-Saeed Announced as October’s Winner of NBB’s Al Watani Savings Scheme Prize Draw
Mohd Hassan Al-Saeed Announced as October’s Winner o…

Read More