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Al Salam Bank Bahrain soars as Islamic bank seals merger with BMI

The Manama-based Bahrain All-Share Index slipped 0.15% to 1,179.75 points on Monday. Aluminium Bahrain lost 0.90%, while Ahli United Bank dipped 0.73%. Shares of Islamic financial institution Al Salam Bank Bahrain or ASBB jumped 3.53% in value, closing at BD0.088. On Saturday, ASBB said its boards of directors and that of BMI Bank have resolved to merge the two entities. The business combination will be carried out by way of exchanging 11 ASBB shares for each BMI Bank share, it was announced here today. Under the terms of the proposed business combination, ASBB will acquire 58.5m BMI Bank shares of BD1 each and issue 644 million ASBB shares of 100 fils each. The new entity will become the 4th largest lender in the Kingdom of Bahrain.