QIIB bids for remaining Islamic Bank stakes
Qatar International Islamic Bank (QIIB) has made a bid of 1p for every share it does not own in Birmingham-based Islamic Bank of Britain (IBB). The offer values IBB at £25.5m.
The takeover comes on the back of the announcement of IBB’s year-end results which showed that while IBB’s operating income was stable at £1.6m, it continued to make pre-tax losses of £8.1m.
IBB is being advised by Charles Cattaneo and Ian Stanway of Bimrngham-based Cattaneo. Keri Rees and Steven Hacking of Eversheds are providing legal advice.
QIIB is based in Qatar and trades on the Qatar stock exchange. It already owns 80.95 per cent of IBB.
The Qatar bank has already requested that IBB’s AIM quote be cancelled, as it intends to have the company re-registered as a private company.
The board of IBB said that it considers the offer to be “fair and reasonable” and is recommending it to shareholders.
Cattaneo said: “The banking sector has had a tough time in the last few years and as a smaller company it can be difficult to raise the capital to support the growth desired. In those circumstances it makes sense for IBB to become part of a larger group.”
IBB was floated on AIM in October 2004.
