Emirates NBD is set to acquire all the shares in Emirates Islamic Bank for a cash consideration of AED11.95 per share or AED69.8 million ($19 million) in total, according to a statement on Dubai Financial Market (DFM).
Emirates NBD already holds 5,424,573,891 shares or 99.89 percent of Emirates Islamic Bank’s ordinary shares. The statement noted that the offer will close on March 27.
Emirates NBD, following the successful implementation of the offer, and subject to the mandatory acquisition, will commence the process of canceling the listing of the shares of Emirates Islamic Bank from the DFM after obtaining the required approvals, the statement added.
Following the acquisition, Emirates NBD noted that it intends to maintain Emirates Islamic Bank’s commercial registration and trade name. The bank will continue to operate under the normal course of business and maintain its operations, added the statement
Emirates Islamic Bank’s shares closed at AED11.950 on Monday ahead of the announcement, slightly down from the 52-week high of AED12.
Emirates NBD’s full acquisition comes after Emirates Islamic announced a record profit before tax of AED3.1 billion in 2024, marking a 46 percent increase compared to the previous year. Additionally, net profit reached a landmark high of $AED2.8 billion, demonstrating a robust 32 percent growth.
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The bank attributed this growth to a positive trend in both funded and non-funded income, showcasing a very strong business performance. Total income rose by 13 percent to AED5.4 billion as assets expanded by 27 percent to AED111 billion.
For the first quarter of 2024, Emirates Islamic reported a record profit of AED811 million, reflecting a significant 35 percent increase compared to the same period last year. This financial performance was attributed to a robust 19 percent growth in total income, driven by both funded and non-funded income streams.
