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Masraf Al Rayan and Al Khaliji agree share-swap deal

Masraf Al Rayan Al Khaliji merger_IFM_Image
The merger will create one of the region's leading Shariah-compliant regional banks

Masraf Al Rayan and Al Khaliji have agreed to sign a merger agreement, according to reports in the media. The merger between the two banks would create one of the region’s leading Shari’ah-compliant banks in Qatar with combined assets worth around $47 billion.

The merger agreement between Masraf Al Rayan and Al Khaliji is subjected to regulatory approval as well as the approval of the shareholders of Al Rayan and Al Khaliji. Both entities will continue to operate independently until the effective date of the merger.

According to the deal, Al Rayan will issue 0.50 Al Rayan shares for every Al Khaliji share, corresponding to a total of 1,800 million new shares issued to Al Khaliji shareholders. Once the merger agreement is completed,  Al Khaliji’s business will be absorbed into Al Rayan’s business, and Al Rayan will remain a legal entity and will continue to operate in accordance with Islamic Shari’ah principles.

While Ali Bin Ahmad Al Kuwari will become chairman of the newly merged entity, Sheikh Hamad Bin Faisal Bin Thani Al Thani will become vice chairman of the board of the merged entity. The Executive Committee of the board will be chaired by Sheikh Hamad Bin Faisal Bin Thani Al Thani.

It is further reported that JP Morgan is acting as financial advisor to Al Rayan and Al Khaliji. Also, K&L Gates and KPMG are acting as legal and transaction advisors to Al Rayan.

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