Mubasher: Bank of London and The Middle East Holdings PLC, which is 19.82% owned by Kuwait-listed Boubyan Bank, has received approval from relevant authorities to repurchase 19.57 million of its shares via Nasdaq Dubai.
The announcement comes after Bank of London and The Middle East Holdings had received an approval from Dubai authorities to begin the buyback over eight trading days starting 10 December, the company’s board chairman Adel Al-Majed said.
Al Majed, who doubles as Boubyan Bank’s CEO, further revealed that the repurchase will be conducted via Al Safwa Mubasher Financial Services, an approved member on Nasdaq Dubai, on behalf of NBK Banque Privée (Suisse) SA.
Bank of London and The Middle East Holdings will buyback the stocks from NBK Banque Privée (Suisse) SA as per a shareholder decision received in 3 June 2016, the top official revealed.
Once the buyback is complete, “the treasury shares will not be resold by the Company at an equal or higher price than the volume weighted average price determined over all transactions in the share repurchase programme for a period of 6 months following the completion of the programme,” the UK-based bank said in a statement.
Al Safwa Mubasher Financial Services PJSC will not be able to act on behalf of selling shareholders.
For now, Bank of London and The Middle East Holdings will buy back 2.4 million shares on any trading day within the eight-day time frame, Al-Majed noted, adding that there would not be a minimum buyback price but the maximum is capped at $0.65 per share.
Bank of London and The Middle East Holdings has received an approval to spend up to GBP 10 million ($12.85 million) on the repurchase of up to 19.573 million shares. Boubyan Bank and the company’s management will not be taking part in the buyback programme, the statement indicated.
Based in the British capital, Bank of London and The Middle East Holdings is an independent bank that operates as per the Islamic Shariah that operates across three business segments, namely wealth management, commercial finance, and savings.
