Sharjah takes over Invest Bank in Dh1.12 billion deal

Abu Dhabi - Sheikh Sultan bin Ahmed Al Qasimi was named chairman of the bank

The Sharjah government has acquired a majority stake of 50.07 per cent in the struggling Invest Bank for Dh1.12 billion and appointed a new chairman.
The bank's shareholders also passed a special resolution to increase the bank's share capital for all shareholders to be underwritten by the Sharjah government up to a certain amount with details and timings to be decided later.
The shareholders also approved an amendment to Article (26), allowing the board to engage in merger talks. They also approved dissolution of the bank if it is merged.
Citing sources, newswires have reported that the Sharjah government was weighing a merger of Invest Bank with Bank of Sharjah and United Arab Bank.
On Wednesday, Sheikh Sultan bin Ahmed Al Qasimi was named chairman of the bank, replacing Omran Abdulla Omran Taryam, who has been appointed vice-chairman. 
"Our priority is to keep improving the bank's asset quality by reinforcing the enhancements made to the risk processes, policies and further strengthening underwriting standards and implementing portfolio management best practices," Sheikh Sultan said.
Sheikh Sultan is currently chairman at several private and public sector entities, including the Sharjah Media Corporation, Sharjah National Oil Company and Tilal Properties.
"Over the medium term, we aim to return the bank to profitable growth through a strategy that allows us to improve operating margins and tap into commercially-viable opportunities," he added.
Omran Taryam said the Government of Sharjah will provide the bank with a strong and stable financial platform to support its future direction.
Three seats on the board have been filled by Government of Sharjah representatives - Waleed Ibrahim Al Sayegh, Ahmed Mohammad Hamad Al Midfa and Ummer Said Mohamed Ummer.
Listed on Abu Dhabi Securities Exchange, Invest Bank's shares remain suspended since talks began with the government for the strategic stake sale. Its shares last closed at Dh2.49.
As part of the deal, the shareholders approved issuance of 1.592 billion shares to the Government of Sharjah at a par value of Dh1 with an issue discount equating to Dh0.30 per share whereby Dh0.70 per share is paid.
- waheedabbas@khaleejtimes.com