Kuwait Finance House (KFH) announced that the sale of its share in Bahrain Islamic Bank, amounting to 38,530,477 shares, representing 13.6% of the bank's share capital, has realized BD 27,587,822 (about KD 21.490 million) by offers in Manama Stock Exchange via an auction that commenced with the rate of 560 Bahraini Fils. The deal closed at 716 Bahraini Fils. KFH's profit from the deal amounted to KD 16.5 million. Purchase was made by a group of investors Wednesday.
"The decision to sell the share of Bahrain Islamic Bank, in which it has been a founding partner since 1979, came for investment considerations driven by the substantial improvement in the bank's performance and the favorable conditions in the Bahraini market." Said Khalid Al-Musallam, manager – direct investment department of KFH. This made the sale a good investment opportunity that boosts the positive role of KFH in markets in which it operates by providing a profitable investment opportunity for investors." He added.
"KFH considers its own investments that are being mature, from the support and continuity perspective, or from the sale and re-investment." He continued, "The decision was based on good reading of the market conditions, current and future developments. KFH has carefully studied the distinctive situation, where Bahrain Islamic Bank moves from a success to another. It was an opportunity to achieve the best return on the investment from the sale of its share." He elaborated.
"The bank's net profit during the last year leaped by over 95%, with KD 5.7 million realized. Dividends were distributed to shareholders, 11.6% cash, and 12% bonus shares." He explained, "This is viewed by investors as an encouraging indicator to purchase, particularly that the present bank management may provide appropriate guarantee to the investor that success will continue under the pre-set plans and strategies, which are implemented by a management of good reputation, that had achieved growth rates in the various aspect of business in the bank." He concluded.