to invest in Bankmed
Total contribution to be below
ten percent of the bank
Investors Teddy and Raymond Rahmeh are planning to buy shares in Bankmed.
“We were informed of the matter and we do not object it,” said Riad Salameh, Governor of the Central Bank.
Negotiations are ongoing and the final number of shares is still being negotiated, according to Bankmed and representatives of the Rahmeh brothers.
The number of shares will not exceed five percent for each of the two shareholders. “This percentage does not require our consent,” Salameh said in a televised interview.
Acquisitions in financial institutions require the approval of the Central Bank if the value of shares is more than ten percent of the overall shares.
The deal is estimated to be valued upwards of $140 million.
The capital injection will take form of a capital increase.
The Rahmeh brothers recently purchased Faqra Club Holding (FCH) for $38 million.
Egypt- and Beirut-based Jordanian investor Alaa Al Khawaja acquired two years ago 42.24 percent stake in GroupMed Holding. Since then, Bankmed has been undergoing several administrative changes and is cost cutting. It appointed Raoul Nehmeh as CEO, and reduced the size of its staff by seven percent. It has also closed 12 non-performing branches from 2017 to June 2018.
Reported by Yassmine Alieh
Date Posted: Jan 04, 2019