Islamic Finance

Kuwait Finance House postpones AUB acquisition deal process due to COVID-19 disruptions

Kuwait Finance House has temporarily suspended the process for its 100% acquisition of Bahrain’s Ahli United Bank citing the disruption to work activities in Kuwait due to the COVID-19 pandemic.

KFH said in a disclosure on April 12 the procedures for the acquisition will be postponed until December.

The Kuwaiti bank has received approval for the postponement from the Central Bank of Bahrain.

KFH shareholders approved in January the acquisition of AUB, saying at the time that it will take up to three years to convert the Bahraini bank to become fully Shariah-compliant.

The merged bank will have assets of $101 billion and an annual profit forecast of $1.5 billion based on past performance, according to KFH.

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