The proposed merger between Kuwait Finance House KSCP and Bahrain-based Ahli United Bank BSC received initial approval from Kuwait's Public Institute for Social Security, or PIFSS, Islamic Business and Finance reported Aug. 19.
The report cited a technical study prepared by PIFSS' management and its investment arm.
The deal will result in the sixth largest banking entity in the Gulf region and the largest in Kuwait with roughly $92 billion in AUM, the report said.
Kuwait's Wafra International Investment Co. also approved opening the two entities' books to initiate the merger process and set a minimum exchange rate — subjected to a comprehensive examination process.
It also indicated that the value of Kuwait Finance House's total shares was 202.6 million Kuwaiti dinars in the due diligence report released in February, while the market value on the same date was 233.33 million dinars.
As of Aug. 19, US$1 was equivalent to 0.30 Kuwaiti dinars.
