Burgan Bank Takes Majority Control of Bank of Bagdhdad

Burgan announced on the Kuwait Stock Exchange today that it had bought another 5.3% of Bank of Baghdad taking its total shareholding to 50.6%.  The new shares were acquired for US$10.7 million, thus valuing its investment at US$102.2 million.   Consolidation of results will begin with 1Q2010.

Burgan earlier acquired Baghdad Bank along with Algeria Gulf Bank, Jordan Kuwait Bank and Tunis International Bank from United Gulf Bank.  The deal was announced in May 2008.  Both UGB and Burgan are majority owned by KIPCO Kuwait and occasionally conduct transactions with one another.   The sales were concluded in stages - bank by bank - during 2008 and 2009.

Yes, United Gulf Bank declared a profit on the sale of the four banks to its affiliate company.

And, no, neither UGB or Burgan operate according to "Shari'ah" principles.

[8:51:41]  ِ.بنك برقان يزيد ملكيته فى اسهم بنك بغداد ليصبح شركة تابعة ‏
يعلن سوق الكويت للاوراق المالية بان بنك برقان افاد بانه قد اتم الاستحواذ ‏
على نسبة اضافية تبلغ 5,3% من اسهم بنك بغداد بقيمة 10,700,000 دولار مما ‏
يجعل البنك شركة تابعة لبنك برقان بنسبة ملكية تبلغ 50,6% ،وعليه فسوف ‏
يتم تجميع نتائج اعمال بنك بغداد ضمن البيانات المالية للبنك ابتداء من ‏
بيانات الربع الاول لعام 2010 .‏