In a significant move within Bahrain’s financial market, Al Salam Bank, the largest Islamic bank in the country, has divested its 15.6% shareholding in Seef Properties. This strategic decision reflects the bank’s ongoing efforts to streamline its operations and hone its focus on core banking activities. The sale, directed to GFH Financial Group, marks an important step in Al Salam Bank’s pursuit of optimizing its investment portfolio.
Details of the Share Sale
In a filing with the Dubai Financial Market (DFM), Al Salam Bank outlined the rationale behind the exit. The bank emphasized that this divestiture is part of a broader strategy to enhance focus on core banking operations along with its investments in banking, takaful, and asset management. The move is a calculated part of its long-term vision for growth and stability within the financial sector.
Role of ASB Capital in the Transaction
ASB Capital, the group’s asset management division, played a pivotal role in facilitating this exit. Launched this year with an initial assets under management (AUM) of US$4.5 billion, ASB Capital has been tasked with sourcing, structuring, and executing the sale of Al Salam Bank’s stake in Seef Properties. The expertise of ASB Capital demonstrates the bank’s commitment to leveraging specialized skills in executing high-stakes transactions.
Insights from Leadership
Rafik Nayed, Group Chief Executive Officer of Al Salam Bank and Managing Director of ASB Capital, stated, “This transaction represents our continued commitment to exit non-strategic holdings as part of a group-wide optimisation initiative. Aligned with our strategy, we are reallocating capital and focusing towards growing core banking operations and expanding our strategic holdings in banking, takaful, and asset management – sectors that offer long-term value and operational synergies within the context of the group.”
Nayed further highlighted, “ASB Capital’s role in facilitating the transaction underscores the strength of our expertise and execution capabilities in transaction advisory and capital markets. Backed by a strong pipeline from both local and regional institutional clients spanning private equity, syndications, capital instruments, and advisory services, ASB Capital is well-positioned to build on the growing momentum in regional deal activity.”
Al Salam Bank’s exit from its 15.6% shareholding in Seef Properties not only illustrates its shift towards a more focused investment approach but also positions it strongly for future growth in sectors that promise stability and synergy. This strategic realignment is expected to provide the bank with enhanced agility in navigating the financial landscape of Bahrain and beyond.