In a press conference held recently, TAIB Bank B.S.C. (c) and Dubai Financial Group (“DFG”) formally announced the completion of the November 8, 2007 acquisition of 60% of TAIB’s shares by Dubai Financial Group, the financial holding company of Dubai Group, a member of Dubai Holding.
As part of the transaction TAIB’s Board of Directors has been reconstituted and Soud Ba’alawy, Executive Chairman of Dubai Group, has been elected as Chairman of the Board of Directors of TAIB Bank. Iqbal G. Mamdani will continue to be the Vice Chairman of the Board. In all, five distinguished professionals have been newly appointed to TAIB’s Board by Dubai Financial Group. The new Board will have four other Directors from TAIB’s previous Board, thus providing continuity from the point of view of corporate governance.
Mohammed Al Gergawi, Chairman, Dubai Holding commented on the significance of the deal: “This is yet another strategic investment for the UAE as it capitalises on the growth of the region’s banking industry. This comes at the right time as the economies of both UAE and Bahrain rapidly diversify and contribute to positioning the GCC region as a global financial powerhouse.”
Speaking on the occasion, Ba’alawy stated, “We are proud to be a major shareholder of TAIB Bank. We regard this transaction as very significant for Dubai Group. Our combined expertise and talent will pave the way for further expansion and growth and hence more value for our shareholders.
“As Dubai Group, we are confident not only to create new opportunities for TAIB in Bahrain and Dubai, but also to leverage TAIB’s traditional focus markets of the GCC, India, Kazakhstan, Turkey and the MENA region.”
Sayanta Basu, CEO, Dubai Financial Group said: “Our investments target long-term high growth opportunities in both private and public companies. We believe that our partnership with TAIB Bank is another proven success and will enrich our portfolio of acquisitions as we look forward to more businesses that are fruitful.”
Dubai Financial Group became the controlling shareholder in TAIB Bank after acquiring a 60 per cent stake in the Bahrain-based bank. The transaction was executed in full compliance of relevant regulations and procedures, and had been announced to media on the same day, following the approval of shareholders and Central Bank of Bahrain
Abdulaziz R. Alrashed, TAIB’s former Chairman, said, “This is perhaps the most significant milestone achievement in TAIB’s 28-year history. With Dubai Financial Group by our side, TAIB’s potential has now been vastly scaled up, and we are sure that greater shareholder value will be achieved with the growth that is expected.”
Iqbal G. Mamdani, TAIB’s Vice Chairman and CEO, commented, “TAIB’s long-term strategy since inception has been to focus on countries with high-growth potential, such as India, Kazakhstan, Turkey, and the countries of the GCC. Dubai Financial Group is now our strategic partner, and their consistent objective of building long-term value through all of their investments will help TAIB grow tremendously in each of these countries, thus benefiting clients and shareholders alike.”
In announcing that he had ceded his Chairmanship, Abdulaziz Alrashed said, “I consider myself privileged to have led the bank through this momentous occasion, and am confident that under the leadership of the new Chairman Soud Ba’alawy, TAIB bank will continue to grow across the region and internationally.”
