Islamic bank in $80 million bid for US coffee firm

Published December 12th, 2000 - 02:00 GMT

The Bahrain-based First Islamic Investment Bank (FIIB) has launched a bid worth more than $80 million for the Caribou Coffee Company of the United States, a newspaper reported Monday, December 11. 

 

The Gulf Daily News said an agreement has been signed to acquire "a substantial interest" in the Minneapolis, Minnesota-based company which has stores in six states. 

 

The purchase is expected to be completed by the end of December. 

 

The goal of Caribou, which was founded by a young couple, Kim and John Puckett, and whose motto is "Life is Short — Stay Awake", is to become a public company, said FIIB chief executive officer Atif Abdulmalik. 

 

"We believe that if the company achieves its growth plan, it will be well-positioned to achieve an initial public offering (IPO) in two to three years," Abdulmalik said, quoted in the paper. 

 

Direct investment transactions undertaken by FIIB since it was established in 1997 now exceed $450 million, the daily said. 

 

Islamic financial institutions are estimated to have a total of $140 billion invested in more than 40 countries. Those investments are growing annually by 15 to 20 percent. 

 

Interest is banned under the Islamic banking system, as the Sharia laws of the Muslim religion forbid usury.— (AFP)  

 

© Agence France Presse 2000. 

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