Another Iraqi bank seeks merger with Mosul Bank

20 June 2011

Ashur International Bank attempts to meet Central Bank requirements

Iraqi-based Ashur International Bank is considering a merger with Mosul Bank for Development & Investment, which recently agreed to merge with Union Bank of Iraq.

The executives will discuss the feasibility of the deal on Wednesday 22 June in the general annual meeting, when it will also discuss the cash dividend ratio.

If the merger is not approved, the bank will discuss increasing capital through 36.3 per cent rights and 10 per cent bonus issues from ID50bn ($43m) to ID100bn.

The proposal comes in a bid to meet Central Bank decision to increase the capital of Iraqi banks to ID100bn by the end of June this year.

“We are a private bank and would like to merge with other Iraqi banks, but first we need to know from the Central Bank of Iraq what the rules and regulations are,” says Atheer Al-Qadi, board member at Ashur Bank.

While Mosul Bank and Union Bank agreed to merge on 25 May this year, the two parties are still waiting for approval from the Central Bank and the Companies Registrar.

“This was a first case in Iraq, a merger has not happened before, so there are no clear regulations about how the banks might be managed,” says Al-Qadi.

If Ashur agrees to the merger, than the new entity will have a market capitalisation of over ID140bn.

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