#Dubai Islamic Bank Board Recommends Buying Local Competitor - Bloomberg

Dubai Islamic Bank Board Recommends Buying Local Competitor - Bloomberg:

Dubai Islamic Bank PJSC is proceeding with plans to acquire a smaller local rival as the United Arab Emirates’ biggest Islamic lender joins a regional wave of mergers and acquisitions. The shares rose.

The state-controlled bank’s board recommended calling a shareholder meeting to consider buying 100% of Noor Bank PJSC, it said in a statement on Monday. The deal would create a lender with about 278 billion dirhams ($76 billion) in assets.

The deal is “positive for the sector and Dubai Islamic Bank,” Aarthi Chandrasekaran, a money manager at investment bank Shuaa Capital PSC, said in an email. Dubai Islamic Bank may pay around 0.8 to 0.9 times book value for Noor Bank shares and the deal may lead to savings of at least 20% for Noor Bank, she said.