Dubai: DFM-listed Al Ansari Financial Services announced Tuesday that it has signed a sales and purchase agreement to purchase a 100 per cent stake in Bahrain’s BFC Group Holdings WLL for $200 million (Dh735 million). The UAE-based integrated financial services group said it would secure financing under customary market terms to finance the acquisition.
“The transaction closing remains subject to regulatory approvals and satisfaction of certain conditions precedent agreed between the parties,” the companies said in a statement. The transaction is anticipated to close by the first quartere of 2025, pending necessary legal and regulatory approvals.
The acquisition will enable Al Ansari Financial Services to expand its presence and “become the largest remittance and exchange provider in the GCC region by branch network,” according to a company statement.
Following the acquisition, the combined entity will have over 410 branches across the UAE, Bahrain, Kuwait, and India—a 60 per cent increase on Al Ansari’s current branch network. The operations will be supported by a workforce of approximately 6,000 employees, marking a 25 per cent increase in Al Ansari’s current workforce.
Al Ansari said it recognises BFC Group Holdings WLL as a unique player due to its sizeable presence and market share across key GCC and Asian markets including Bahrain, Kuwait, and India. “The acquisition is aligned with Al Ansari’s strategic growth pillars of expanding its geographic presence, growing its physical branch network and enhancing its service portfolio,” it said.
The consolidated revenues of Al Ansari and BFC Group for full-year 2023 amounted to approximately $385 million (Dh1.4 billion), reflecting a 22 per cent rise compared to Al Ansari’s reported revenue.
Rashed Ali Al Ansari, Group CEO of Al Ansari Financial Services PJSC, said, “This acquisition represents a pivotal moment in our growth trajectory, establishing our Company as the leading foreign exchange and remittance service provider in the Gulf region.”
Al Ansari said, “By broadening our customer base and extending our services across the GCC and India, we aim to provide a wider audience with access to our comprehensive remittance and foreign exchange solutions. This move not only enhances our regional presence but also aligns with our broader strategy of diversification and expansion into new markets. Ultimately, this transaction is designed to deliver sustainable value and optimal returns for our shareholders.”
BFC Group Holdings was established in 1917 and is said to be the first foreign exchange company and financial services institution in Bahrain and the GCC.
Ebrahim Nonoo, Managing Director and CEO of BFCGH, said, “This strategic move highlights the value and potential of our organisation and opens new opportunities for growth and innovation. Our team has worked tirelessly to build a strong foundation, and we are confident that Al Ansari Financial Services PJSC will continue to drive our mission forward, ensuring the best possible outcomes for our clients and stakeholders.”
