Notes to the Consolidated Financial Statements
(Thousands of US dollars)
56
Dar Al-Maal Al-Islami Trust
Annual Report 2013
14. Investments in
associates
(continued)
The summarised financial information of the Group’s principal associates is as
follows:
Name and
Assets
Liabilities Income Profit/
Published Carrying
Country of
(loss)
price
value
% holding
quotation per share Subsidiary Group
2013
Listed:
Faisal Islamic Bank
of Egypt (Egypt)
6,527,273 6,061,126 527,213 93,622 USD 7.92 USD 9.39
49
49
BBK B.S.C. (Bahrain)
8,569,401 7,686,305 298,103 120,072 BHD .43 BHD .68
25
13
2012
Listed:
Faisal Islamic Bank
of Egypt (Egypt)
6,525,846 6,106,212 507,021 103,993 USD 7.70 USD 8.60
49
49
BBK B.S.C. (Bahrain)
8,242,867 7,474,520 288,151 112,756 BHD .39 BHD .71
25
13
USD United States Dollar
BHD Bahrain Dinar
Included in investment in associates at 31 December 2013 is $155.5 million
(2012: $157.1 million) of goodwill. The movement is as follows:
2013
2012
At 1 January
157,131
174,818
Additions
8
-
Conversion associated company
to a subsidiary
(1,677)
-
Disposals
-
(29)
Impairment
-
(17,658)
At 31 December
155,462
157,131
Ithmaar Bank holds a 25.38% shareholding in BBK. As per management’s
valuation report, the estimated fair value of Ithmaar Bank’s investment in BBK
was determined to be $415.5 million (2012: $375.3 million) compared
to a carrying value of $397.2 million (2012: $393.0 million). Based
on this assessment management did not impair BBK’s carrying value at
31 December 2013 (2012: $17.7 million).
Ithmaar Bank received in principle approval from the Central Bank of Bahrain
on 6 December 2010 for the proposed acquisition of the remaining shares in
First Leasing Bank B.S.C. (FLB) through a share swap, subject to compliance
with various conditions.
The shareholders of Ithmaar Bank B.S.C. and First Leasing Bank B.S.C. (FLB)
in their Extraordinary General Meetings held on 21 October 2012 approved the
Transfer of Business from FLB to Ithmaar and the share swap involving issuance
of four ordinary shares of Ithmaar for one ordinary share of FLB directly to the
shareholders of FLB (other than for FLB shares held by or on behalf of Ithmaar).
The Central Bank of Bahrain’s approval was received on 17 February 2013
for Transfer of Business from FLB to Ithmaar. Ithmaar and FLB completed the
remaining legal and regulatory requirements in March 2013.
The impact on DMI’s ownership of Ithmaar Bank B.S.C. share capital resulted
in a dilution from 53.28% to 49.29% effective 1 March 2013. As the Group
maintains control over Ithmaar’s Board of Directors and considering the dispersed
nature of the remaining shareholders, DMI continued to consolidate Ithmaar Bank
B.S.C. as a subsidiary based upon the Group’s assessment under IFRS 10.
