Emirates NBD to Fully Acquire and Delist Emirates Islamic Bank from DFM

In a strategic move to streamline its operations, Emirates NBD, Dubai’s largest banking group by assets, has announced plans to complete its acquisition of Emirates Islamic Bank (EIB) and remove it from listing on the Dubai Financial Market (DFM). Currently holding a commanding 99.89% stake, Emirates NBD has launched a mandatory cash offer to secure the remaining 0.11% of shares, marking a significant consolidation in the local banking landscape.

Deal Snapshot

• Offer price: AED 11.95 per share, valuing the outstanding 0.11% stake at approximately AED 69.9 million  
• Offer timeline:
  • Announced: 25 February 2025
  • Circulated: 27 February 2025
  • Offer close: 27 or 30 March 2025, per various filings  
• Delisting trigger: Once the mandatory offer is unconditional and regulatory approvals are secured, EIB shares will be delisted.

Why This Consolidation Matters

1. Corporate Efficiency
   By taking full ownership of EIB, Emirates NBD can streamline reporting processes, reduce administrative redundancies, and achieve operational cohesion across its Islamic banking arm—while still allowing EIB to retain its distinct brand and identity.
2. Regulatory Assurance
   The transaction adheres to UAE market rules and requires clearance from the Securities & Commodities Authority (SCA), the DFM, and the Central Bank—underscoring the deal’s compliance and strategic importance  
3. Strategic Brand Retention  
   Despite full ownership, Emirates NBD confirms that EIB will continue to operate, keeping its commercial registration and trade name in place, preserving continuity for customers, employees, and stakeholders.

EIB’s Performance & Market Context

• The bank recently ended 2024 on a high note, with profit before tax reaching AED 3.1 billion, up 46% year‑on‑year. Total income also rose to AED 5.4 billion, and assets expanded by 27% to AED 111 billion.
• EIB boasts a wide-reaching branch network across the UAE, driven by its Sharia‑compliant product suite spanning retail, corporate, and treasury services  
• The bank’s market cap before takeover stood near AED 64.9 billion, with its share price hovering at the AED 11.95 offer level—slightly below a 52‑week high of AED 12.00  

Transaction Timeline

Here’s how the process unfolds:

1. 25 Feb 2025 – mandatory offer notification circulated
2. 27 Feb 2025 – detailed offer documents released
3. By 12 Mar 2025 – EIB publishes formal offeree circular  
4. 27/30 Mar 2025 – bid closing and unconditional declaration  
5. Within days – settlement and notices dispatched
6. By 30 May 2025 – acquisition period concludes in full  

Industry Insights

• Common strategy: Experts note that dominant bank groups often fully absorb smaller subsidiaries to improve governance, backend integration, and cost efficiencies—while maintaining consumer loyalty through a familiar brand .
• Broader market trend: This marks one of several recent deals involving strategic consolidation within UAE’s financial sector, reflecting a shift toward simplified corporate frameworks .

Stakeholder Implications

• Shareholders of the minor free‑float holding can expect prompt premium redemption at AED 11.95 per share.
• Customers will see a seamless transition, with no impact on their account operations, service continuity, or product offerings under EIB’s banner.
• Employees are also assured of business as usual, as Emirates NBD has pledged no disruption to ongoing operations.
• Regulatory bodies maintain active oversight, reinforcing the UAE’s commitment to stability and transparency in its financial system.

What’s Next?

• Delisting execution: Following tender closure, subject to approval, EIB will be formally de‑listed from the DFM.
• Operational alignment: Emirates NBD may advance backend integration—IT systems, risk frameworks, and audit controls—paving the way for enhanced service delivery and oversight.
• Strategic rollout: With full control over Islamic banking, Emirates NBD is positioned to leverage unified product development and broaden its presence in that space, catering to evolving customer needs both regionally and globally.

Final Take

Emirates NBD’s move to acquire the remaining minority interest and delist EIB underlines a clear vision: to harness its full capabilities, tighten operational synergy, and integrate its Islamic banking arm more tightly—while preserving brand consistency and customer assurance. As the UAE’s banking sector matures, such consolidation not only drives efficiency but also strengthens the nation’s status as a robust and globally trusted financial hub.