Dubai Islamic Bank shareholders approve Noor Bank acquisition
Dubai Islamic Bank (DIB) received shareholder approval for the acquisition of unlisted Dubai-based Noor Bank. With the acquisition, DIB will become one of the largest Islamic banks in the world, with total assets worth 275 billion dirhams ($74.9 billion). Shareholders gave approval for the acquisition through an increase of DIB’s capital from 6.6 billion shares to 7.2 billion shares, with a share swap ratio of 1 new share in DIB for every 5.49 Noor Bank shares, translating into an issuance of about 651 million new DIB shares. The deal comes after a wave of mergers in the UAE’s banking sector on the back of tougher competition and regulation, coupled with a slowing economy and a slide in house prices.
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