Qatar First Bank Issues a Supplementary Disclosure on Signing a Conditional Contract by a Subsidiary to Sell Its Full Stake

14 November 2019

Qatar First Bank (QFB) announced that it has submitted its letter No IR/0113/2019 dated 3 November 2019 informing Qatar Financial Market Authority (QFMA) and Qatar Exchange (QE) of signing a conditional agreement in accordance with article (5) of the Merger and Acquisition Regulations issued by QFMA. However, prior to signing that agreement, there was no written offers by the acquirer and hence the Bank could not inform QFMA and QE of any verbal negotiations that do not rely on a formal written offer by the acquirer.

Further, with respect to articles (2&3), the Bank has listed the required details by QFMA and QE as follows:

1.      QFB holds a 100% of the stakes of QFB Food & Beverages.

2.      QFB food & Beverages holds 49% of the “Food Services Company”.

3.      There will be no anticipated impact on the P&L account following the transaction.

4.      The said company owns retail stores for selling of food and beverages inside Qatar

5.      The party submitted the purchase offer is Mr. Mubarak Jasim Al Groun, Qatari National and living in Qatar.

6.      Mr. Mubarak Jasim Al Groun owns 51% of the “Food Services Company” with a paid in capital of QAR 12 million.

7.      Mr.  Mubarak Al Groun is willing to purchase 5,880,000 stakes against QAR 26 million.

8.      The buyer is willing to acquire 100% of the company’s stakes

9.      The buyer will finance the acquisition from his own resources without using any bank financing.

10. QFB will benefit from liquidating this investment and will reinvest funds in other more suited investments

11. There will be no conflict of interests arising from this transaction

12. In regards to the revenues and the net profit for the Food Services Company, it will be as follow: