The tender offering won acceptances representing 97. 273% of AUB’s shares, exceeding expectations and exceeding KFH’s minimum condition of 90%.
The final effects of the historic $10. 9 billion acquisition of up to one hundred percent of Ahli United Bank B. S. C. (AUB) through Kuwait Finance House K. S. C. P. (KFH) were announced today. SICO BSC(c), a leading regional asset manager, agent and investment bank (licensed as a wholesale bank through the CBB), acted as Bahrain’s receiving agent, Bahraini execution advisor and cross-listing advisor on the deal, which was structured through a voluntary conditional offer through KFH to AUB shareholders to earn up to one hundred percent of the percentages issued and paid from AUB. The transaction was offered through a percentage exchange with an exchange ratio of 1 new KFH percentage for 2,695 percentages AUB.
The transaction marks the first cross-listing of a Kuwait-listed company in Bahrain and is the third largest bank takeover in the GCC, with a market capitalization of AUB before its final suspension of $10. 9 billion. The consolidation is expected to create the sixth largest bank in the region.
SICO Chief Executive Najla Al-Shirawi said: “We are proud of our role as one of the lead advisors and the impressive effects we have controlled to finalise this historic cross-border transaction. We have leveraged our experience and on-the-ground expertise to design and manage initial and secondary public offerings and execute some of the largest and most complex public and personal procurement in the region to capture this unique opportunity. A transaction, which includes cross-quoting, which has taken years to prepare, this transaction not only generates price for our customers, but also for the market as a whole, as we set new heights in the M space.
The era of the initial offer began on August 24, 2022 and the last date for the final offer ended on September 23, 2022. The offer won acceptances representing 97. 273% of AUB’s shares, far exceeding expectations and exceeding KFH’s minimum condition of 90% acceptance. In accordance with the Bahrain Business Companies Law (CCL) and CBB’s Acquisitions, Mergers and Acquisitions (TMA) module of the Regulations, KFH exercised its right to withdraw AUB’s remaining stake.
“As a cross-border tender being offered in Bahrain, coupled with simultaneous execution in Kuwait and a hundred percent exchange design with really extensive terms of negotiation, our mandate required significant multi-stakeholder synchronization and to make it we are confident that AUB shareholders can participate in the last decade with this transaction adding the first primary cross-border acquisition. , the first cross-listing and the first use of the right of withdrawal,” said Wissam Haddad, Head of Investment Banking and Real Estate at SICO. “M&A activity continues to boom in the region, especially in the monetary sector, as consolidation opens up new avenues for expansion into new markets. With this new milestone added to our balance sheet, we look to the future to capitalize on this momentum and unlock new opportunities for clients across the GCC. “
Once the new KFH shares are indexed on the Bahrain Stock Exchange, AUB shareholders with Bahrain-indexed shares will get their new KFH shares tradable on the Bahrain Stock Exchange (and at the price in USD), while AUB shareholders with shares on the Kuwait Stock Exchange will get their new KFH tradable shares in Boursa Koweït. KFH’s new shares will be allocated to accepting shareholders as of October 2, 2022 and will begin trading on the morning of October 6, 2022.
Shareholders who have accepted the offer and wish to trade on the cross-listing date contact a broker prior to trading to ensure the validity of documents and accounts.
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About SICO
SICO is a leading asset manager, broker-dealer, market place maker and investment bank in the region, with $4. 4 billion in assets under control (AUM). Today, SICO operates under a wholesale banking license from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage, a specialized regional custody house, SICO Fund Services Company (SFS). SICO also oversees a majority-owned subsidiary, SICO Capital, a Saudi investment bank. Headquartered in the Kingdom of Bahrain with a developing regional and foreign presence, SICO has an established reputation as a trusted regional bank offering a full diversity of monetary responses including asset management, brokerage, investment banking and spot building. market, backed by solid and experienced studies. team that provides regional information and studies of more than 90% of the most sensitive actions in the region. Since its inception in 1995, SICO has consistently outperformed the market and developed a strong institutional consumer base. Going forward, the bank’s continued expansion will be guided by its commitments to sound corporate governance and the progression of trusted relationships with its customers. The bank will also continue to invest in its data generation functions and the human capital of its 100 exceptional employees.
Media Contact: Ms. Nadeen Oweis Head of Corporate Communications, SICO Email: noweis@sicobank. com
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