Dubai Group's DFG completes 60pc acquisition of TAIB Bank

It said DFG became the bank's controlling shareholder on November 8, with the transaction done according to required rules and procedures including the approval by shareholders and Bahrain's central bank.

"This is yet another strategic investment for the UAE as it capitalises on the growth of the region's banking industry," said Mohammed Al Gergawi, Chairman of Dubai Holding, the parent company of Dubai Group.

He said the acquisition "comes at the right time" because the UAE and Bahrain are rapidly diversifying their markets and therefore contributing "to positioning the GCC region as a global financial powerhouse".

The statement said the bank's board of directors has been reconstituted and elected Soud Ba'alawy, executive chairman of Dubai Group, as board chairman. Iqbal Mamdani will continue to be the board's vice-chairman.

"We regard this transaction as very significant for Dubai Group," said Ba'alawy. "Our combined expertise and talent will pave the way for further expansion and growth and hence more value for our shareholders."

TAIB's former chairman, Abdulaziz Alrashed, described the deal as "perhaps the most significant milestone" in the bank's 28-year history. "With DFG 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," he said.

Sayanta Basu, CEO of DFG, said the group's investments are focused on long-term opportunities on both public and private 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," Basu added.

Mamdani said the bank's long-term strategy is to focus on countries with high growth potential such as the Gulf states, India, Kazakhstan and Turkey.

He added: "I consider myself privileged to have led the bank through this momentous occasion, and am confident that under the leadership of the new chairman...TAIB bank will continue to grow across the region and internationally."