DFM-listed Emirates Islamic Bank’s (EIB) board recommended that shareholders accept Emirates NBD’s AED 699 mn full takeover bid, after approving its fair value report, according to a disclosure (pdf). The takeover bid would see Dubai’s largest bank by assets snap up EIB’s remaining 0.11% free-float stake for AED 11.95 apiece.

Offer price at premium to fair value price: EIB’s financial advisor KPMG pegged the fair value between AED 3.68-4.06 per share, making the offer a hefty 3x premium.

REMEMBER- Shareholders have until Tuesday, 27 March to accept the offer. Upon completion, Emirates NBD will be the sole owner of EIB after delisting it from the DFM. EIB will continue to operate independently, retaining its commercial registration and trade name, with business operations set to remain unchanged.

Market reax: EIB share price remained flat at AED 11.95 on yesterday’s close.

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