Islamic investment bank GFH Financial Group has signed a memorandum of understanding to acquire a majority stake in Bahrain’s Bank Al Khair.
In a bourse filing, GFH said the acquisition was subject to due diligence, board and acquisition approval and agreement on the acquisition structure.
“GFH believes that the acquisition of BAK will create a larger financial group having banking operations within GCC, UK, Malaysia, Turkey, Pakistan and India,” the company said in the filing.
GFH said it expected the deal to impact favourably on shareholders, but the impact could not be measured until the deal was finalised.
Bank Al Khair is an Islamic lender with assets of $580.5m at the end of the first quarter of 2016.
GFH, which is also based in Bahrain, is 85 per cent listed on the Dubai Financial Market with shareholders including Abu Dhabi Financial Group, which recently increased its stake.
The remaining 15 per cent of its capital is attributed to shareholders in Bahrain and Kuwait.
Earlier this year GFH confirmed plans to develop its real estate portfolio in Bahrain and Dubai.