DUBAI: Dubai Islamic Bank said its board had approved plans to fully acquire its mortgage unit Tamweel, in which it already holds a majority stake of 58.2 percent.
Dubai’s largest Shariah-compliant lender intends to make a tender offer to buy all shares off Tamweel’s other shareholders, it said in an e-mailed statement.
Each Tamweel shareholder will be offered 10 DIB shares for every 18 Tamweel shares. After closing the offer, DIB will apply to the regulator to delist Tamweel from the Dubai Financial Market.
DIB took a 57.33 percent stake in Tamweel in 2010, a move that rescued the mortgage lender, which was struggling during a crash of Dubai’s property market.
Tamweel’s current market value is about AED1.19 billion ($ 323 million). DIB said it would seek shareholder approval to issue new shares; no date for the shareholder meeting was provided.
Before the announcement, shares of Tamweel ended 2.5 percent lower while DIB was up 1.5 percent.
The mortgage firm is expected to be among the companies most affected by a new UUAE central bank regulation, introduced this week, to cap the size of mortgage loans for foreigners and local citizens.
Dubai Islamic Bank to fully acquire Tamweel
Dubai Islamic Bank to fully acquire Tamweel
Closing Bell: Saudi main index starts the week in green with 10,610 points
RIYADH: Saudi equities closed higher on Sunday, with the Tadawul All Share Index rising 136.53 points, or 1.30 percent, to finish at 10,609.76.
Gains were also seen across other market segments, as the MT30 Index advanced 16.92 points, or 1.21 percent, to 1,414.10, while the Nomu Parallel Market Index added 80.34 points, or 0.34 percent, to close at 23,618.74.
Market breadth was firmly positive, with 230 gainers against 33 losers on the main market, reflecting improved investor sentiment.
Trading activity picked up, with 189.21 million shares changing hands, while the total value of traded shares reached SR2.87 billion.
On the gainers’ side, Saudi Industrial Export Co. led advances after jumping 10 percent to close at SR2.75, followed by Shatirah House Restaurant Co., which rose 9.88 percent to SR8.56.
BAAN Holding Group Co. added 7.18 percent to finish at SR1.94, while Saudi Reinsurance Co. climbed 5.94 percent to SR27.82. Saudi Darb Investment Co. also posted strong gains, advancing 5.70 percent to close at SR2.41.
Meanwhile, losses were seen in select real estate investment trusts and industrial stocks. Alinma Retail REIT Fund fell 3.30 percent to SR4.39, while Alinma Hospitality REIT Fund declined 2.77 percent to SR8.06.
Derayah REIT Fund slipped 1.76 percent to SR5.02, and Al Yamamah Steel Industries Co. eased 1.67 percent to close at SR36.44.
On the announcement front, Saudi Real Estate Co. said its subsidiary, Saudi Real Estate Co. for Infrastructure, has signed a Shariah-compliant credit facilities agreement with Alinma Bank.
The financing totals SR550 million, carries a one-year renewable tenor, and is secured by a promissory note in line with the facility’s terms. The funding is intended to support ongoing project operations and strengthen credit capacity for future developments. Binyah is 60 percent owned by Saudi Real Estate Co., with the Public Investment Fund listed as a related party.
Shares of Saudi Real Estate Co. closed at SR12.58, up SR0.13, or 1.04 percent.
In a separate disclosure, Saudi Ceramic Co. announced it has completed the regulatory procedures to convert its Desert Mines branch into a single-person closed joint-stock company, wholly owned by Saudi Ceramic Co.
The move consolidates mining, quarrying, and industrial raw materials processing activities under a 100 percent-owned structure and is part of the group’s strategy to enhance operational efficiency and governance.
The company said the conversion is not expected to have a material financial impact on its results.
Saudi Ceramic Co. ended the session at SR27.18, gaining SR0.20, or 0.74 percent.
