Dubai Islamic unit to take over Sudan bank

December 27, 2007 (DUBAI) — Dubai Islamic Bank unit Bank of Khartoum plans to buy smaller Sudanese rival Emirates and Sudan Bank, Dubai-based daily Emirates Business reported on Thursday.

Dubai Islamic, the third-biggest Gulf Islamic lender by market value, would own 28 percent of the enlarged lender after the deal closes next month, the paper reported, citing Dubai Islamic spokesman Abu Baker al-Amin.

Sudan’s government will own 10 percent of the bank, while Abu Dhabi Islamic Bank ADIB.AD and Sharjah Islamic Bank SIB.AD would also own stakes, the paper said.

Bank of Khartoum planned to raise 1.1 billion dirhams ($299.6 million) in a private placement to fund expansion, Emirates Business said.

“The merger will strengthen the Bank of Khartoum’s regional and international presence,” Amin was quoted as saying.

Dubai Islamic currently owns 55 percent of Bank of Khartoum, the paper said.

(Reuters)