Barwa Bank will acquire the share capital of TFI in exchange of its shares. Both companies are currently in the process of finalising all necessary filings in order for TFI shareholders to be issued shares in Barwa Bank.
Post the acquisition, the enlarged Barwa Bank will compete in the market place by utilising the combined resources of its retail, corporate, private, treasury and investment banking operations. The bank hopes to get benefits in the areas of human resources, operations, IT, marketing, financial control, risk, audit and credit, as well as through the creation of cost synergies, operational efficiencies, a centralized control structure and strengthened management and execution.
Mohammed Al Saad, acting CEO of Barwa Bank, said: “The acquisition of TFI creates a very compelling value proposition for all parties; Barwa Bank, The First Investor and our customers. Furthermore, the acquisition will create significant advantages for TFI’s shareholders that could not be realised whilst it was a standalone independent company. TFI shareholders will reap the benefits of joining a strong financial institution with a robust and diversified business model.”
David Clarke, CEO of The First Investor, said: “I am excited that The First Investor will become part of a group that allows us to benefit from a stronger capital and asset base, which will allow us to compete more effectively against longstanding and established banks and other financial institutions”.
Simmons & Simmons and KPMG advised Barwa Bank on the transaction.
