EIB to seek trading halt on Dubai bourse

Emirates Islamic Bank (EIB) said it will seek suspension of its share trading on the Dubai Financial Market (DFM) from June 10, as it prepares to be fully merged with a rival lender.

The decision comes after EIB or Emirates NBD (ENBD), Dubai’s largest bank by assets, received no objections to the latter’s mandatory acquisition announced this year.

“All remaining EIB shares (not already held by ENBD) will be re-registered in the name of ENBD in EIB’s share register on or around June 13,” EIB said in a statement.

ENBD will settle the payment to the remaining EIB shareholders from June 9.

In February ENBD announced plans to delist EIB after acquiring 100 percent of the sharia-complaint lender.

The bank made a mandatory cash offer to buy the remaining 0.11 percent stake (free float) in EIB for AED11.95 ($3.25) per share or AED70 million ($19m).

Previously ENBD held 99.89 percent of EIB’s more than 5.4 billion ordinary shares.

ENBD intends to maintain EIB’s commercial registration and trade name. It will continue to operate normally, with any cessation of operations ruled out.