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Trowers & Hamlins advises on significant Capital Markets transaction in Bahrain

Trowers & Hamlins advises on significant Capital Markets transaction in Bahrain

National Bank of Bahrain, Social Insurance Organisation and Military Pension Fund have completed the purchase of The Investment Dar's and associated companies' shareholding of 51.5% in the publicly quoted banking institution Bahrain Islamic Bank.

The shares were purchased for a total amount of c.US$92,000,000 after obtaining the appropriate regulatory approvals.  National Bank of Bahrain will hold 50% of the shares purchased, with Social Insurance Organisation and Military Pension Fund each holding 25%.  The transaction is one of only a handful of major transactions to take place between publicly quoted Bahraini institutions in recent years and is of significant importance in the banking sector in Bahrain. 

This strategic acquisition will allow the new stakeholders to assist in strengthening and expanding Bahrain Islamic Bank's business and should enable Bahrain Islamic Bank to provide a great range of innovative Islamic financial services to clients.  The acquisition will also offer significant benefit to the bank's shareholders and will have a positive impact on the banking sector of Bahrain. 

Trowers & Hamlins advised on legal and regulatory issues, conducted a due diligence investigation into the affairs of Bahrain Islamic Bank, provided guidance to the buyers' in house teams, drafted and negotiated a sale and purchase agreement for the transaction, and worked with the regulators and the client in order to complete the successful share transfer.   

Brian Howard, the lead partner on the transaction at Trowers & Hamlins, commented:  "We are delighted to have been involved in another landmark transaction for the banking sector in Bahrain.  The National Bank of Bahrain, Social Insurance Organisation and Military Pension Fund teams have worked hard throughout the process and will be rewarded with a significant strategic asset in the continued consolidation of Bahrain's banking sector." 

Brian Howard was supported by Dominic O'Neil (partner, Bahrain), Bill Jefferies (partner, Dubai), Jeremy Ingham (partner, Bahrain), Salman Ahmed (partner, Bahrain), Deborah Howard (associate, Bahrain), Samer Hamzeh (associate, Dubai), Tom Reynolds (associate, Bahrain), Simon Valner (trainee, Bahrain), Dan Archer (trainee, Abu Dhabi), and Reem Jano (paralegal, Abu Dhabi).