Boubyan Bank announces a successful offer for BLME Holdings plc (BLME)
Valid acceptances, together with Boubyan Group’s existing shareholdings, represent approximately 67.44 per cent. of the issued ordinary share capital of BLME
The offer will remain open for further acceptances until 1.00 p.m. (London time) on 19 February 2020
Boubyan Bank believes that the acquisition will enable it to provide its clients with additional Sharia compliant UK service offerings
Boubyan Bank is pleased to announce that, as at 27 January 2020 (being the first closing date for acceptances of the offer), Boubyan Bank had received valid acceptances in respect of a total of 73,263,270 BLME Shares (representing approximately 39.52 per cent. of the issued ordinary share capital of BLME, excluding BLME shares held in treasury), which, when taken together with Boubyan Group’s existing shareholdings in BLME, represent approximately 67.44 per cent. of the issued ordinary share capital of BLME (excluding BLME shares held in treasury).
On 27 January 2020, Boubyan Bank announced that all conditions to the offer were either satisfied or waived and the offer became unconditional both as to acceptances and in all respects with effect from such date.
The offer will remain open for acceptances until 1.00 p.m. (London time) on 19 February 2020 or such later time(s) or date(s) as Boubyan Bank may determine, subject to the consent of the Panel on Takeovers and Mergers of the UK and the Dubai Financial Services Authority, where required.
Commenting on the successful offer, Abdul-Salam Al-Saleh, Deputy Chief Executive Officer of Boubyan Bank, said:
"As one of the market leading and fastest growing Kuwaiti based banks we have an increasing number of GCC clients who seek access to Sharia compliant UK wealth management opportunities. We believe that by consolidating our longstanding shareholding position in BLME we can further develop its business and drive the growth of both businesses."
Following completion of the offer, Boubyan Bank intends that BLME will continue to operate as a standalone group within the wider Boubyan Bank business.
On 5 December, Boubyan Bank announced that it had reached agreement with the independent directors of BLME on the terms of a recommended all cash offer by Boubyan Bank to acquire the shares of BLME (other than the BLME shares already held by Boubyan Bank (or its associates) and BLME shares held in treasury). BLME is a UK public limited company listed on Nasdaq Dubai and the direct holding company of The Bank of London and the Middle East plc, which provides Sharia compliant financial services to its customers. Boubyan Bank has been a long-term shareholder of BLME. On 20 December 2019, Boubyan Bank published an offer document setting out the full terms and conditions of the offer.
Under the terms of the offer, BLME shareholders are entitled to receive US$1.05 per BLME share. Moreover, Boubyan Bank had received irrevocable undertakings from certain BLME directors and BLME shareholders to accept the offer in respect of approximately 13.21 per cent. of the issued ordinary share capital of BLME (excluding BLME shares held in treasury) as at 4 December 2019.
Recently, Boubyan Bank has reported net profit of KD 62.7 million in 2019, at a growth rate of 12% compared to 2018, with an earnings per share of 20.4 fils compared to 19.2 fils in 2018.
Boubyan Bank’s acquisition of BLME coincides with the Bank’s 15th anniversary celebration, and the 10th anniversary of its transformation which brought a lot of achievements and successes, the most important of which is increasing the Bank’s shares in the Kuwaiti market.
All of the Bank’s main indicators witnessed a remarkable growth in 2019 where the total assets increased to KD 5.3 billion at a growth rate of 22% while customers’ deposits increased by 17%, to reach KD 4.3 billion and the financing portfolio increased to KD 3.7 billion with a growth rate of 14% in addition to the continuous growth of the bank’s customers’ base.
The total equity of the bank increased to KD 575 million by the end of 2019 and the operating income increased to KD 146 million. The market share in financing increased to approximately 9.3%, while Boubyan Bank’s share of the retail finance increased to approximately 12%. Besides, the bank recorded outstanding growth in the corporate credit portfolio which grew by 17%. This was achieved by attracting a number of operational companies known for their financial and economic creditworthiness while continuing to maintain the highest standards of credit quality, monitoring and diversifying risks.
Furthermore, Boubyan Bank has made a new achievement in 2019, adding to its other successes, when Standard & Poor’s Global rating agency confirmed its Long-Term Issuer Credit Rating at “A/Stable”, thereby ranking the Bank as the second highest credit rating among local banks.
S&P’s rationale for the rating noted Boubyan Bank as the fifth largest bank in Kuwait, with a solid retail franchise, good market position, strong capitalization as well as exhibiting good profitability.
During the past year, Boubyan Bank managed to maintain its technological leadership by receiving the World’s Best Islamic Digital Bank Award for the fifth year in a row from Global Finance.
For the first time in Kuwait, two international institutions, namely, Global Finance and the Banker, named Boubyan Bank the Best Islamic Bank in Kuwait in 2019 due to its accomplishments across various financial indicators and the growth of its market shares.