Dubai Islamic Bank (DIB) has announced that it has extended the deadline to March 30 for acceptance of Tamweel share swap applications, to allow adequate time for shareholders to complete administrative formalities.

DIB is the majority shareholder in Tamweel with 58.2 per cent of the issued equity. The Islamic lender’s extraordinary general assembly meeting (EGM) held on March 4 had voted in favour of a formal offer to acquire the remaining 41.8 per cent of the issued shares in Tamweel.

Commenting on the offer, Dr Adnan Chilwan, the deputy CEO said the response to the offer made by DIB had been excellent.

"With acceptances received so far, the bank 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," he stated.

On 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," he stated.
 
The bid, which was announced on January 3, 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.

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.

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.-TradeArabia News Service