Thursday, May 13, 2010

Gulf Finance House - Not to Sell Khaleeji Commercial Bank Stake?

AlQabas quoting Reuters quotes Ted Pretty, Group CEO at GFH, that GFH is not considering selling its  37% stake in KHCB, but rather increasing it.  Apparently, as part of planned foray into retail and commercial banking in Bahrain and the region.

Since GFH desperately needs to sell assets and since KHCB is likely the most attractive of what it has to offer for sale, it's hard to understand the business rationale here.

Obviously, there's more to this story that just this news item.  Was GFH successful in selling some other assets?  Has an old or new shareholder suddenly agreed to invest capital?  Was GFH unable to find a buyer for its interest?  Perhaps, a 37% stake isn't sufficiently attractive to a potential investor in KHCB who may want to ensure control over management?

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