HSBC and Credit Suisse were selected based on their expertise as well as credentials in the investment banking industry and will agree on the exchange rate of shares.
Ahli United Bank (AUB) has announced that HSBC and Credit Suisse are currently undertaking the necessary valuations studies to assist AUB and Kuwait Financial House (KFH) to arrive at a fair share exchange ratio. In a bourse filing, AUB said that these steps are necessary to obtain regulatory approvals in the Bahrain and Kuwait among other concerned countries.
Following the disclosure confirming a possible merger, HSBC and Credit Suisse were appointed to govern the valuation, due diligence as well as other technical requirement which are a prerequisite to a possible AUB and KFH merger. If the tie-up materialises, it would join a number of several recent tie-ups to create bigger and stronger lenders in the MENA region, creating a merger with total assets amounting to $90.57 billion, making it the sixth largest bank in the Gulf.