KFH-Bahrain adviser for bank merger

Kuwait Finance House-Bahrain (KFH-Bahrain) said the new year heralded the successful closing of the merger between three Bahrain-based Islamic banks, Elaf Bank, Capital Management House and Capivest, creating a strengthened financial institution with a total equity of around $ 340 million and total assets in excess of $ 400 million spanning the Middle East and North Africa, Europe and Asia.
As transaction and lead adviser, KFH-Bahrain, after having initiated discussions with the three banks in late 2011, worked closely with them to create a robust merged entity that is able to better compete in the dynamic and growing global Islamic banking and investment industry.
The expertise and services of the banks are highly complementary, laying the groundwork for a smooth integration process.
Furthermore, with a larger capital base, the newly created institution will be better positioned to participate in larger investments and projects and to quickly and more effectively capitalize on a broader set of available opportunities both across the MENA region and globally.
Commenting on the merger, Abdulhakeem Alkhayyat, managing director and CEO of KFH-Bahrain who chaired the merger steering committee said: “We are delighted to announce the legal and financial closing of this historic merger. With an enhanced capital base, diverse mix of shareholders, assets and revenues, a new bank emerges with the size, scale and resources to deliver greater investment opportunities and value to both investors and shareholders alike.”
Alkhayyat added: “As the first transaction of its kind, KFH-Bahrain is honored to have successfully originated, executed and closed the merger. Our advisory capabilities and KFH’s position and role in the Islamic banking industry ensured that the process was completed in a fair and transparent manner.”
Also advising on the transaction was Deloitte, Dubai as the Financial Adviser, Trowers & Hamlins as Legal Advisers and Elham Ali Hassan and Associates as local legal counsel.