Al Khaliji will be delisted from the Qatar Stock Exchange (QSE) from December 1, following its merger with Masraf Al Rayan, thus taking the total number of the listed firms to 47.
As of Wednesday, December 1, Al Khaliji shareholders registered on the bank’s extraordinary general assembly held on October 6, 2021, will be able to dispose of their shares in Masraf Al Rayan resulting from the merger, according to the approved exchange rate.
The QSE, in co-operation with the Qatar Central Securities Depository Company, intends to take the necessary measures to implement the capital increase of Masraf Al Rayan, resulting from the merger, a bourse communique said.
The execution will take place after the end of the trading session Tuesday. The capital of Masraf Al Rayan after the increase will be QR9.3bn distributed over 9.3bn ordinary shares.
"The shares of Masraf Al Rayan will be tradable with the new capital as of Wednesday, December 1, 2021. On the same date, the QSE will delist Al Khaliji from all related systems and reports,” the communique said.
With the delisting of Al Khaliji, the total number of firms within the banks and financial sector will stand at 12.
All regulatory approvals relevant to merger were obtained and completed to allow Masraf Al Rayan acquire the entire shares of Al Khaliji.
The merger resulted in an increase in Masraf Al Rayan’s capital, which was reached through independent evaluation reports from accredited valuers with the approval of the regulatory authorities.
Based on valuation reports, the exchange rate of shares between the two banks was 1:2 (that is, each share of Masraf Al Rayan corresponds to two shares of Al Khaliji).
The merger would be the second consolidation in Qatar's banking system after Barwa Bank merged with International Bank of Qatar in 2019 to create Qatar's third-largest Islamic bank, and sixth-largest bank overall.
Moody's, an international credit rating agency, had said the proposed merger would not only support profitability but also enlarge Islamic franchise and market share as well as give the required scale to support the retail banking and contain funding costs.
The merged entity would have total assets (conventional and Islamic) of around $45bn, or around 9% share of total banking system assets, the credit rating agency had said in a note.