FIMBank Directors believe takeover bid beneficial
The Board of Directors of FIMBank is of the opinion that the bid for the acquisition of a Controlling Interest in the bank will be beneficial and will create a number of opportunities which are favourable and conducive to the growth of the bank and the Group.
In an opinion statement, the Board said that it is its understanding that the bid should not presently generate any change in the actual employment structure of the bank, the conditions of employment of the bank’s employees or the listing status of FIMBank.
Moreover, the Board has evaluated in detail the representations made by the Offerors in the Offer Document with regard to their outlook on the business strategy of FIMBank, which will remain that of a specialized trade finance institution, while concurrently developing more opportunities and providing additional resources.
It is envisaged that FIMBank will have increased access to funding and consequently have the opportunity to benefit from additional share capital which will therefore also allow the same bank to attract cheaper funding. This will facilitate the growth of the FIMBank Group and will improve the cost of relevant financing. The Board of Directors of FIMBank also believes that being part of the KIPCO Group will result in a positive achievement for the FIMBank Group which will form part of a greater network with higher targets and goals to be achieved.
While the Board expressed an overall positive opinion on the effect of the implementation of the bid on FIMBANK, no opinion was given on the price offered in the Offer Document which, in the opinion of the Board of Directors, should be evaluated taking into consideration the numerous aspects detailed above as well as the current needs, aspirations and individual circumstances of each individual shareholder.
The members on the Board of FIMBank who directly or indirectly own shares in the bank, namely Dr John C. Grech, Mohammed I.H. Marafie, Fouad M.T. Alghanim and Hamad M.B. Al Sayer are separately considering the bid in their personal capacity and in the light of their individual circumstances.