Ithmaar, GFH End Faysal Bank Deal Talks

In May 2024, Ithmaar Holding, which holds a 66.7% stake in Faysal Bank Limited (FBL), approved the proposed sale of 75% of its stake in FBL to GFH Financial Group. This transaction would effectively transfer approximately 50% of FBL’s total outstanding shares, granting GFH a controlling interest in the bank. The deal was valued at $225 million, implying a total valuation of $450 million for FBL.

The proposed transaction was subject to regulatory approvals in both Pakistan and Bahrain. As of December 2024, GFH Financial Group stated that discussions regarding the acquisition of Ithmaar Holding’s portfolios were still ongoing, pending necessary regulatory clearances.

However, lately, Ithmaar Holding and GFH Financial Group have mutually agreed to end discussions regarding GFH’s potential acquisition of Ithmaar’s financing and investment portfolio. The decision follows detailed negotiations, with no further material updates at this time.

Earlier in May 2024, Ithmaar received shareholder approval to sell certain assets and liabilities, including 75% of its stake in Faysal Bank Limited (FBL), amounting to a controlling interest. The proposed deal was subject to regulatory and legal approvals in both Pakistan and Bahrain but will no longer proceed.

GFH Financial Group, headquartered in Bahrain, is listed on four GCC stock exchanges and remains a key player in the region’s financial sector.