VCBank shareholders approve Bahrain's Esterad as strategic investor

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Bahrain - Shareholders of Venture Capital Bank (VCBank), an Islamic wholesale bank licensed by the Central Bank of Bahrain, have approved the joining of Esterad Ventures, to participate in VCBank’s capital increase as a strategic investor.

Esterad Ventures is a company 100 per cent owned by Esterad Investment Company, a Bahrain-based public shareholding company.

Approved by an overwhelming majority of VCBank shareholders at a recent extraordinary general assembly meeting, Esterad Ventures aims to own up to 100pc of the bank’s shares.

Robert Wages, chief executive of VCBank, said, “The participation of Esterad Ventures in VCBank’s capital increase will provide our existing shareholders with a viable and rewarding exit option. A strategic investor with a diverse portfolio of international and local assets, Esterad will provide financial stability to the bank’s ongoing restructuring process. I look forward to working closely with Esterad to improve investment returns and create considerable value for our investors and our new shareholder, Esterad, in the long-term.”

Ahmed Abdulrahman, chief executive of Esterad, said, “We are excited to participate as a strategic investor in VCBank and we look forward to implement our restructuring plans, that will aim to turnaround the bank, create value and benefit all stakeholders. Esterad will focus on nurturing VCBank AUMs, enhance their value and pave the way for rewardable exits to VCBank and its investors.”

At the EGM, VCBank’s board of directors and shareholders were fully briefed on the bank’s restructuring requirements to accommodate Esterad Ventures as a new strategic investor.

Representatives from the Central Bank of Bahrain and the Industry, Commerce and Tourism Ministry were present to oversee the voting process.

The transaction is expected to be completed in the upcoming months, subject to the two parties receiving all regulatory approvals.