DUBAI, Aug 22 (Reuters) - Bahrain-based Islamic investment bank GFH Financial Group (GFH) has signed a memorandum of understanding to buy a majority stake in Bank Al Khair, a Bahraini lender with a presence in several countries, GFH said on Monday.
GFH didn’t give any financial details but said the acquisition, if it went ahead, would “create a larger financial group having banking operations within GCC (Gulf Cooperation Countil), UK, Malaysia, Turkey, Pakistan and India”.
Founded in 2004, Bank Al Khair is an Islamic bank with total assets of $580.5 million as of March 2016, according to Thomson Reuters data.
The deal is subject to approval by the boards of directors and shareholders of the banks, as well as completion of due diligence and regulatory approvals, Dubai-listed GFH said, adding that the structure of the acquisition also had to be agreed.
The acquisition would benefit shareholders of the combined entity, although the impact on GFH’s financial position cannot be measured at the moment, it added. (Reporting by Tom Arnold; Editing by Andrew Torchia)