Dubai Islamic Bank (DIB) today announced that it has extended the deadline for acceptance of Tamweel share swap applications, to allow adequate time for shareholders to complete administrative formalities. The offer will now remain open until 5pm on Saturday, March 30, 2013.
Commenting on the offer, Dr. Adnan Chilwan, Deputy Chief Executive Officer, DIB said: “The response to the offer made by DIB has been excellent. With acceptances received so far, DIB has reached around 80 per cent of Tamweel’s shareholding. However, several shareholders have indicated their consent but need more time to complete the formalities and therefore we have extended the deadline.”
Explaining the decision to acquire Tamweel, Dr. Chilwan said: “The home finance market grew by 30 per cent in 2012, and we expect continued growth over the next few years. The 100 per cent acquisition of Tamweel will enable DIB to take advantage of the opportunities offered by the recovery and growth of the real estate sector. It also creates significant synergies for both businesses through a combination of DIB’s balance sheet strength and Tamweel’s expertise in the business”
DIB is the majority shareholder in Tamweel with 58.2 per cent of the issued equity. DIB’s Extraordinary General Assembly Meeting (EGM) held on March 4, 2013 voted in favor of a formal offer to acquire the remaining 41.8 per cent of the issued shares in Tamweel it does not currently own. The bid, which was announced on January 3, 2013, is based on the offer of 10 new DIB shares for 18 existing Tamweel shares held. The fair value of each share for DIB and Tamweel underlying the intended swap is set at AED 2.25 and AED 1.25 respectively.
The bid was approved by all regulators, including the Ministry of Economy, the Securities and Commodities Authority of the UAE, Central Bank of the UAE, the Dubai Financial Market; and by shareholders of DIB.
Tamweel shareholders were sent the Offer Statement and the Acceptance Form by mail. In order to participate in the offer, qualifying shareholders have to submit acceptance forms directly to an appointed broker or custodian. Alternatively, acceptance forms are also accepted at the DIB head office, if delivered by hand and accompanied by valid proof of identification.
After the closing of the share swap offer, DIB intends to apply to the Securities and Commodities Authority of the UAE for the delisting of Tamweel shares from the Dubai Financial Market.