The deal covers 80 per cent of First Islamic's total Medifax assets, with the imminent sale of the pharmacy services division set to take the total value of the transaction to about $325 million. First Islamic acquired Medifax in 2001 in a $123 million transaction.

'To validate private equity investments you have to stage exits and while we previously divested Computer Generation Incorporated, this is in a different league,' says First Islamic chief executive Atif Abdulmalik. 'Investors more than doubled their original stakes.'

Prior to the Medifax announcement, First Islamic has focused on acquistitions this year. The bank acquired the US' American Pad & Paperin September. In June, as part of a strategy of expanding in Europe, First Islamic formed joint ventures with Vicarage Gate Holdings, Sunrise Senior Livingand Shurgard Self-Storage(MEED 30:6:03; 13:6:03; 6:6:03). A London office opened earlier in the year.