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Halal Business

KFH sees 90 per cent profit jump after AUB deal

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The two lenders announced the deal last week, the first major cross-border bank merger in the Gulf region in recent years.

Sunday 27, January 2019 BY KUDAKWASHE MUZORIWA

Kuwait Finance House's (KFH) purchase of Bahrain's Ahli United Bank (AUB) is expected to boost consolidated profit by more than 90 per cent from the level in 2018.

The duo, which have been in merger talks since mid-2018, agreed on a preliminary exchange ratio of one KFH share for every 2.326 AUB shares but they have not revealed the share prices for the exchange ratio.

In a bourse filing, KFH stated that the due-diligences will be commenced after obtaining the required approvals of the relevant regulatory bodies represented Central Bank of Kuwait and Central Bank of Bahrain and other relevant regularity bodies.

The consolidation will create the largest banking entity in Kuwait with assets of about $94 billion and the sixth largest bank in the Gulf region.

The valuation report was prepared by HSBC and Credit Suisse.

TAGS : KFH, AUB , HSBC, Credit Suisse, Gulf bank merger

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