- The Islamic Bank of Britain is being acquired by the Qatari International Islamic Bank in an unconditional cash offer.

Under the terms of the deal, shareholders in the Islamic Bank of Britain can receive one penny in cash for each share. The terms of the offer value its fully diluted share capital at £25,464,700.

The Offer represents a 70.4% discount to the closing price of 3.38p per share last night.

The directors of the Islamic Bank of Britain have said that the terms of the offer are fair and reasonable.

Its chairman, Robert Owen, commented: "In the absence of access to alternative additional sources of funds, the Board believes that it will be difficult for IBB to achieve the necessary asset growth to achieve profitability and therefore the Board welcomes the offer from QIIB which will provide all shareholders the opportunity to exit their shareholding should they so desire." HE Sheikh Dr Khalid Bin Thani Bin Abdullah Al Thani, Chairman of Qatar International Islamic Bank, said:

"We are delighted to formally announce our firm intention to make an unconditional offer in cash, for the issued share capital of IBB that we do not already own.

"Our long-term strategy is to build an international Sharia-compliant banking business and we believe that our extensive experience in Sharia banking will allow us to develop and integrate the IBB business into the QIIB group. We look forward to working closely with the existing management of the IBB business and to developing it in the long term".

At 2:07pm [LON:IBB] Islamic Bank of Britain PLC share price was -2p at 1.38p

Story provided by