An overwhelming majority of Fimbank plc shareholders approved two resolutions which will enable Burgan Bank SAK of Kuwait and United Gulf Bank BSCof Bahrain to acquire a controlling interest in the bank at an extraordinary general meeting last Thursday.

The meeting was convened to consider an offer received from United Gulf Bank and Burgan Bank to authorise the directors to issue equity securities and restrict or withdraw statutory pre-emption rights, as well as to increase the bank’s authorised share capital to permit the issue of new shares.

The development following the shareholders’ approval is now subject to regulatory approval.

The interest shown in Fimbank by Burgan Bank and United Gulf Bank, both part of the 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 bank’s founders, the Al Massaleh family,” Fimbank chairman John Grech said.

Fimbank president Margrith Lütschg-Emmenegger explained that all indicators were pointing to a time for change at Fimbank. She explained how this was a positive development all round. Fimbank brings trade finance expertise to the table.

“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,” Ms Lütschg-Emmenegger revealed.