* Offering 1 pence per IBB share, 70 pct discount
LONDON, March 16 (Reuters) - Qatar International Islamic Bank (QIIB) QIIB.QA has agreed to buy full control of the Islamic Bank of Britain (IBB) (ISLB.L) as part of QIIB's plans to develop an international banking business compliant with Sharia laws.
The deal values the British bank at around 25 million pounds ($40.19 million). (full story)
Last year, QIIB had already moved to raise its stake in IBB to 81 percent. [ID:nLDE66R0QT]
QIIB is offering one pence a share, representing a discount of 70 percent to IBB's closing share price of 3.38 pence on March 15.
Members of Qatar's ruling al-Thani family are also major shareholders in IBB, which listed on the London Stock Exchange in October 2004.
"Our long-term strategy is to build an international sharia-compliant banking business and we believe that our extensive experience in sharia banking will allow us to develop and integrate the IBB business into the QIIB group," QIIB Chairman Sheikh Dr Khalid Bin Thani Bin Abdullah Al Thani said in a statement.
"We look forward to working closely with the existing management of the IBB business and to developing it in the long term," he added.
Islamic banking products which are sharia compliant do not charge interest on financing. Profits or losses are instead shared with the borrower, meaning they discourage unnecessary speculation and spread the risk.
Last month, Qatar said it was open to buying stakes in part-nationalised British banks Lloyds (LLOY.L) and Royal Bank of Scotland (RBS.L). [ID:nLDE71M0ZN]
($1=.6221 Pound)
(Reporting by Sudip Kar-Gupta, Editing by Rosalba O'Brien)
Source : http://in.reuters.com/article/2011/03/16/qatar-britain-islamicbank-idINLDE72F1TS20110316
- March 16, 2011
STORY LAST YEAR
Source : http://in.reuters.com/article/2010/07/28/qiib-islamicbankbritain-idINLDE66R0QT20100728 - July 28, 2010
* Share offering to raise QIIB's stake to 81 pct
* Shares up 0.9 pct
* IBB shareholders to meet on Aug 17
DUBAI, July 28 (Reuters) - Qatar International Islamic Bank QIIB.QA (QIIB) wants to raise its holding in Islamic Bank of Britain (ISLB.L) to a "significant stake" by offering to buy new shares, it said on Wednesday.
The increase is subject to regulatory approval and shareholders of the Islamic Bank of Britain (IIB), it said in a statement on the bourse website.
On Tuesday, IBB announced plans to raise 20 million pounds ($31 million) through the placement of new shares priced at 1 pence per share to QIIB and that trading continued to be "challenging".
"The Company has explored its options for raising new finance and concluded that its shareholders are best served by the Company securing funds from an existing shareholder, QIIB," it said.
The shares will be issued at a 69.2 percent discount to the 3.25 pence per share price on July 26 and a 67.5 percent discount to the net book value per share as at end of 2009.
Shares in QIIB were trading 0.9 percent higher at 0930 GMT.
QIIB holds an 11.2 percent stake in the IBB and is the Gulf state's sixth largest lender by market value.
Following the shares placement, the Qatari lender will be an 81 percent shareholder in IBB.
Members of Qatar's ruling al-Thani family are also major shareholders in the bank which listed on the London Stock Exchange in October 2004.
A meeting of IBB shareholders has been called for August 17. (Reporting by Rachna Uppal; Editing by Jason Neely)
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