Burgan Bank, a commercial bank based in Kuwait, has kicked off the process to acquire a majority stake in Malta-based FIMBank.

FIMBank said in a statement today that  its largest shareholder, Massaleh Investments K.S.C.C. has granted Burgan Bank the right to acquire its 38.8% shareholding.

Burgan has informed the bank’s board of directors that it intends to inject new equity in FIMBank  which will see it increase its prospective holding to above 50% of the bank’s issued share capital.

The directors agreed to invite Burgan to proceed with submitting its formal proposal for the consideration of the board. The proposed transfer of Massaleh’s shareholding to Burgan, the injection of new equity and a prospective Mandatory Bid which Burgan would consequently be required to make to all remaining shareholders in terms of the Listing Rules, will all be subject to satisfactory conclusion by Burgan of the due diligence process to be held by Burgan on FIMBank as well as regulatory approval.

FIMBank last year made a profit of $9.13 million after tax.