Bahrain-based Ithmaar Bank announced yesterday that it has purchased 136.97 million shares in Shamil Bank in a $410 million transaction.

The shares were purchased by Ithmaar Bank from Dar Al Maal Al Islamic (DMI) Trust.

With this purchase, Ithmaar Bank has acquired a 60 per cent shareholding in the Bahrain-based Shamil Bank.

Both Ithmaar Bank and Shamil Bank are public shareholding companies listed on the Bahrain Stock Exchange (BSE).

'Ithmaar Bank purchased the Shamil Bank shares in an arranged trade on the BSE at $2.93 per share,' said the bank in a statement.

In a two-way deal, DMI Trust is to acquire from Ithmaar Bank a 100pc shareholding in Ithmaar's subsidiary, Islamic Investment Company of the Gulf (IICG) Bahamas.

With the acquisition of Shamil Bank, the activities of Ithmaar Bank will now cover the entire spectrum of Islamic banking and finance services, including commercial banking, private and corporate banking, investment banking, Takaful (Islamic insurance), and leasing.

Its flagship companies include takaful company, Solidarity, based in Bahrain, Faisal Finance (Switzerland) and Faysal Bank Limited (Pakistan).

'The main objective of the transaction is to create added value for the shareholders of both Ithmaar Bank and Shamil Bank,' said a bank official.

Under the share swap deal, Ithmaar Bank will increase its stake in Faysal Bank Limited (FBL) to 65 per cent (from 28pc) and in Faisal Finance to 100pc (from 49pc). Ithmaar Bank will also acquire Shamil Bank's 25pc shareholding in Meezan Bank, an Islamic investment and commercial bank in Pakistan