Capivest, Elaf Bank and Capital Management House complete merger on 31 December 2012

    Trowers & Hamlins advises on the first three-way investment bank merger

    The new entity will hold assets in excess of US$400 million

    First transaction of its kind which may provide model and catalyst for further mergers in Bahrain and the GCC

Three Bahrain-based Islamic banks, Capivest, Elaf Bank and Capital Management House, have recently completed their legal and financial closing of the first three-way bank merger in Bahrain.

This landmark transaction will create a strong banking institution that is able to compete solidly in the current market.  The combining of the banks' wealth of experience in financial services will enable the new entity to attract larger and more substantial projects and provide a greater range of innovative financial services to clients.  In addition, the strong balance sheet created by the merger will have a positive impact on Bahrain's banking sector and should assist in enhancing Bahrain's position as a regional financial hub.    

International law firm Trowers & Hamlins provided legal services to the three banks.  The merger was originated and managed by Kuwait Finance House Bahrain B.S.C., who was the lead transaction advisor.  The corporate, banking and finance law experts provided advice on all aspects of the merger, including structuring advice, carrying out a complex and detailed legal due diligence process on the three banks, assisting in the preparation of the shareholder materials, drafting the merger agreement and assisting with completion.

Brian Howard, Partner at Trowers & Hamlins, said: "This unique merger strengthens Bahrain's banking sector and the services it offers, allowing it to compete vigorously in the international market.  We hope that this fusion will assist in reinforcing Bahrain's position as a leading regional and international financial hub."

Bill Jefferies, Partner at Trowers & Hamlins, added: "We are excited to be part of the first three-way banking merger in Bahrain.  Each of the banks' merger teams and their steering committee has worked hard on the process and will be rewarded with a stronger, more competitive and diverse entity.  We are delighted to have been involved."

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