Jan. 6 (Bloomberg) -- European Islamic Investment Bank Plc plans to invest $16 million in Rasmala Holdings Ltd. and buy shares from the Dubai-based investment bank and brokerage’s chairman as the companies develop a strategic partnership.
The $16 million investment will be implemented over 12 months as EIIB converts a financing facility into Rasmala shares valued at 35 percent of the brokerage’s outstanding stock, the London-based lender said in a statement today. EIIB will also acquire 7.6 percent of Rasmala stock from Chairman Ali Al Shihabi in exchange for 3.5 million pounds ($5.4 million) of its own shares, the company said.
EIIB will receive the majority of Rasmala’s so-called management shares, allowing the London-based lender to appoint more than half the company’s directors and to influence company management, according to the statement.
Rasmala forecast a full-year loss before interest, tax, depreciation, amortization and restructuring charges of $7 million for 2011. The company anticipates an improvement in results in 2012 after cutting costs and reorganizing operations, EIIB said.
--Editor: James Kraus
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