DUBAI: National Bank of Bahrain (NBB) and a local pension fund will buy a 51.6-percent stake in Bahrain Islamic Bank (BIB) from its Kuwaiti owner in the latest consolidation move in the island kingdom's banking sector.
Bahrain's central bank has encouraged its lenders to consolidate as it seeks to rebuild the sector which has been hit by two years of social unrest.
Central bank Gov. Rasheed Al-Maraj said last week that he expected to see at least one merger in the non-OPEC country without disclosing any names. Al-Maraj, speaking at a conference, said the regulator would also require domestic banks to take more steps to ensure their soundness.
As part of the deal, NBB and Social Insurance Organization Asset Management Company, a unit of pension fund Social Insurance Organization, will each take a 25.8-percent stake in Bahrain Islamic for 72 fils per share, according to an NBB statement.
They are buying the stake from Kuwait's Investment Dar and associated companies. Dar is selling assets as part of its debt restructuring. It sold a 37.5 percent stake in luxury carmaker Aston Martin to Italian private equity fund Investindustrial late in December.
The deal is at a near 3-percent premium to Bahrain Islamic's closing share price of 70 fils on Thursday. There are 1000 fils in a Bahraini dinar. Based on Bahrain Islamic's total outstanding shares, the value of the deal is about 34.9 million dinars ($ 92.57 million).
The transaction will provide NBB, the second largest lender by market value in the country, an opportunity to expand into Islamic banking
"We have been looking for an appropriate opportunity to establish a footprint in the Islamic banking industry and BisB represents a suitable vehicle for us," Abdul Razak Hassan Al-Qassim, NBB's chief executive said in a statement.
NBB operates 25 branches in the country. Bahrain Islamic is the oldest Islamic lender in the island kingdom.
Among other deals in the country's banking sector, Al Salam Bank said in January it was in merger talks with an unnamed regional bank, while Gulf Finance House said it was studying options to merge its unit, Khaleeji Commercial Bank, with other Bahraini banks.
NBB, pension fund to buy 51.6% stake in Bahrain Islamic Bank
NBB, pension fund to buy 51.6% stake in Bahrain Islamic Bank
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
