DIB investors approve Tamweel acquisition
Dubai, March 4, 2013
Dubai Islamic Bank (DIB) said its shareholders have given approval to the lender for 100 per cent acquisition of the emirate's top Islamic mortgage lender, Tamweel.
The announcement was made at the end of DIB's extraordinary General Assembly Meeting.
The assembly voted in favour of DIB’s formal offer to acquire the remaining 41.8 per cent of the issued shares in Tamweel it does not currently own.
DIB is the majority shareholder in Tamweel with 58.2 per cent of the issued equity.
This 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 Dh2.25 and Dh1.25 respectively.
Commenting on the approval, DIB chairman Mohammed Ibrahim Al Shaibani said, "We believe that the home finance market is set to grow over the next few years. The 100 per cent acquisition of Tamweel by DIB will not only support the recovery and growth of the sector, but also create strong synergies for both businesses."
"We thank our shareholders for their approval to the acquisition and believe that it will unlock new opportunities for both entities," he stated.
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.
The assembly also approved DIB’s proposal to issue new shares by way of a capital increase of the bank’s issued share capital in accordance with the commercial companies law.
The new DIB shares will be issued to the shareholders of Tamweel who will accept to transfer their shares in Tamweel.
Also at the meeting, DIB approved the distribution of 15 per cent cash dividend for 2012 to the investors.
The Islamic lender had reported a net profit of Dh1.19 billion, compared to Dh1.05 billion in 2011, an increase of 13 per cent. The assembly also reviewed the Fatwa and Sharia supervisory board report, and reappointed Deloitte as the bank’s external auditors.
“DIB’s strong financial performance in 2012 is a reflection of the overall vibrancy of the UAE economy. Over the past year, the bank has enjoyed healthy growth in net profit, customer deposits and total assets, and we are delighted to share this success with our shareholders,” said Al Shaibani.
-TradeArabia News Service