Ithmaar Bank, a Bahrain-based investment bank with global reach, said yesterday it had reviewed its 2009 strategy in light of the ongoing financial uncertainty, and announced that it would put on hold its plans for the share swap between Shamil Bank of Bahrain, a wholly owned subsidiary, and BBK (formerly known as Bank of Bahrain and Kuwait).
The announcement was made after the Ithmaar Board of Directors reviewed the Bank’s priorities for the year ahead and decided that it would be in the Bank’s strategic interests to postpone the earlier share swap proposal. The decision was discussed with Ithmaar Bank’s largest shareholder, DMI Trust, before it was made. In response to repeated inquiries, Ithmaar Bank had in December 2008, announced its intention to increase its stake in BBK through a share swap arrangement, with BBK issuing additional shares to Ithmaar Bank in consideration for 100 percent of Shamil Bank. The plans were to be finalised by the boards of Ithmaar and BBK before they were presented for approval to the shareholders of both banks, as well as the necessary authorities.
On Monday, the Bahrain Stock Exchange published resolution number (5) regarding de-listing SHAMIL Shares from BSE.