The “financial assets acquisition deal” includes the holding firm’s retail banking business, Ithmaar Bank, its stake in Bank of Bahrain and Kuwait, and Solidarity Holding, one of the largest takaful groups globally, Ithmaar said in a filing to the Dubai Financial Market (DFM).

Last October, the two Bahraini companies signed a memorandum of understanding and started discussions regarding the sale of Ithmaar Holding’s assets.

In its latest statement, Ithmaar said the transaction is in line with the Central Bank of Bahrain’s objectives to develop the Islamic finance industry. It will also position Al Salam as the largest Islamic lender in Bahrain.

“Following the transaction, Ithmaar Holding will continue to hold a well-diversified portfolio of international and local financial and other assets which include banking business in Bahrain and Pakistan,” said Prince Amr Al Faisal, Chairman of Ithmaar Holding.