Qatar’s second-largest Islamic bank Masraf Al Rayan (MAR) has received shareholder approval for its merger with the region’s leading financial institution Al Khalij Commercial Bank (al khaliji), during an extraordinary general meeting (EGM) held virtually.
The proposed merger, which is accepted by the shareholders, will be carried out in accordance with Article 278 of Qatar Law Number 11 of 2015 and its subsequent amendments, as well as the regulations of Qatar Central Bank Law Number 13 of 2012.
According to the statement, “Following the merger, new shares in Al Rayan will be issued based on the shareholders of al khaliji receiving 0.5 Al Rayan shares for every 1 share in al khaliji, subject to obtaining all regulatory approvals and fulfilling all the conditions precedent set out in the Merger Agreement dated 7 January 2021 between al khaliji and Al Rayan.”
The shareholders also accepted Barclays Bank’s Fairness Opinion Report, which concludes that the Exchange Ratio resulting in the value of al khaliji of 1800,000,000 additional shares in Al Rayan’s share capital is fair to the holders of al khaliji shares from a financial standpoint. During the meeting, it was reaffirmed that the Merger is subject to regulatory approvals and that both entities will continue to operate separately until the Merger’s effective date.
Ali bin Ahmed al-Kuwari Chairman & MD Masraf Al Rayan Bank
“I am very pleased with the success of this landmark EGM that propels us forward to continue toward a successful merger with Al Khaliji. We look forward to combining the key strengths of our two banks so that we are ideally positioned to meet the needs of a wider range of clients and increasing our market share, product innovation, and customer satisfaction.”
Mr. Turki Mohammed Al Khater, Vice Chairman of Al Rayan said, “Securing the approval of our shareholders is a major step toward the success of this historic merger with Al Khalij. With our shareholders’ support, we are moving closer towards creating a strong unified entity that will have an enhanced presence in the State of Qatar and international markets, as well as bring great benefits to our country and economy toward the achievement of Qatar National Vision 2030.”
“Our efforts remain focused on combining the strengths of both banks and maximizing our synergy toward transition and integration into the new, stronger Shari’ah compliant bank. We are confident that the merger is a pivotal step to further showcase the State of Qatar’s economic growth, vision and ambitions and is testament to our commitment to creating a more robust Qatari banking system,” Mr. Al Khater added.
