Investment Grade investors to acquire controlling interest in FIMBank

01.02.2013

During an Extraordinary General Meeting convened yesterday evening, an overwhelming majority of FIMBank plc shareholders approved two resolutions which will enable Burgan Bank S.A.K. of Kuwait and United Gulf Bank B.S.C. of Bahrain to acquire a controlling interest in the company, subject to regulatory approval.

Commenting on this landmark development, FIMBank Chairman Dr John C. Grech said that the interest shown in FIMBank by Burgan Bank and United Gulf Bank, both of which form part of the premiere middle-eastern investment holding company KIPCO Group, “reflects 17 years of hard work, effective and innovative decision making, the dynamism and professionalism of the FIMBank’s top executives and staff, and above all, the vision of the Al Massaleh family, who set up the Bank”. He said that this move, which has now been endorsed by FIMBank’s shareholders, “is an important milestone for FIMBank, not least because it opens up new horizons and will allow us to expand and pursue opportunities which to date were effectively out of our reach”. According to Dr Grech, this development, which in itself adds stature to Malta as a financial services centre, also demonstrates FIMBank’s commitment to contribute to the advancement of this sector in Malta. 
 
FIMBank President Margrith Lütschg-Emmenegger said that all indicators were pointing out that it was time for change at FIMBank. She thanked the shareholders who voted in favour of an important milestone: “This is a positive development all round. FIMBank brings trade finance expertise to the table and we are proud that such prestigious institutional investors are keen to add us to their portfolio. In turn, the investor brings a rating well above investment grade, so critical in today’s operating environment. The synergy will increase FIMBank’s investment rate level and as a result of the interest shown by the new investors we have already received loan offers from three different banks with lower interest rates and for a longer term”.

Yesterday’s meeting was convened to consider an offer received from United Gulf Bank B.S.C. and Burgan Bank S.A.K., to authorise the directors to issue Equity Securities and restrict or withdraw Statutory Pre-Emption Rights, as well as to increase the Authorised Share Capital of the company so as to permit the issue of new shares.

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