Central Bank of Bahrain yesterday approved the sale of a controlling stake of Bahrain-based TAIB Bank to Dubai Financial.

The transaction took place at the Bahrain Stock Exchange to sell 60 per cent of the banks outstanding shares to Dubai Financial Group.

Securities and Investment Company who was the buy-side broker bought 62,623,301 shares for the Dubai company. TAIB Securities represented TAIB Bank's shareholders who approved the offer from Dubai Financial to buy their stake.

The transaction was executed at the effective price of $2.044 per share which represents 78.92 per cent of the total value of transaction at the effective price of $2.59 per share. The remaining 21.08pc of the value of the transaction will be held in an escrow maintained with HSBC Bank London to be released in 18 months from the day of the transaction.

The agreement between Dubai Financial Group and TAIB Bank's shareholders to sell 60pc of the value of its outstanding shares was signed on May 31 this year. Details of the transaction were disclosed at that time and sent to all the bank's shareholders and parties involved. - TradeArabia News Service