National Bank of Bahrain (NBB) and SIO Asset Management Company (SIOAM) have completed the purchase of The Investment Dar's and associated companies' shareholding of 51.6 per cent in Bahrain Islamic Bank (BisB).

SIO Asset Management is a wholly owned subsidiary and the investment arm of Social Insurance Organisation and the Military Fund.

The shares were purchased by NBB and SIOAM at 72 fils per share after obtaining the required regulatory approvals for the transaction and for the final documentation between the various parties, reported the Gulf Daily News, our sister publication.

NBB and SIOAM have now each acquired 25.8 per cent of BisB's shares.

In March, NBB and SIOAM had announced that they had agreed the terms on this purchase. Trowers & Hamlins acted as legal adviser for the buyers.

"This investment represents a significant strategic initiative for NBB," said chief executive and director Abdul Razak Al Qassim.

"We have been looking for a suitable opportunity to establish a footprint in the Islamic banking industry and BisB represented an appropriate vehicle for us. BisB's strengths in Islamic banking and its sound retail franchise will complement our business," he added.

The NBB chief said it would work closely with SIOAM and other stakeholders in ensuring a more prosperous BisB.

"We are delighted to have concluded this transaction on behalf of our clients (the Military Fund and the Private Pension Fund)," SIOAM chief executive Shaikh Abdulla Khalifa Al Khalifa said.

"As an organisation, we are focused on investing in Bahraini businesses which have the potential to offer significant benefits to shareholders and the economy in general. BisB is an apt example of that," he stated.

"It is a major player in the Islamic banking sector and offers an excellent opportunity to further the growth of not only the sector but also on a holistic economic platform," said Shaikh Abdulla.

"We will be working with NBB and other stakeholders to build the business further," he added.-TradeArabia News Service