Singapore-based fintech iFast will look to expand its reach in the U.K. by acquiring a majority stake in Bahrain's BFC Bank.
iFast has entered into an agreement with partner Eagles Peak to acquire BFC Bank from Bahrain-based BFC Group, according to an exchange filing.
The Singaporean fintech will acquire an 85 percent stake in Eagles Peak – a bidding company incorporated in 2020 for the purpose of acquiring BFC Bank – for 40 million British pounds ($54 million), pending regulatory approval.
After the transaction, the current sole shareholder, MMSS Investments, will hold the remaining 15 percent stake.
Accelerated Growth
Although iFast expects initial losses in 2022 and 2023 – BFC Bank posted a net loss of 2.2 million British pounds for the first nine months of 2021 – it believes that the proposed deal would lead to accelerated client acquisitions worldwide via licensed access to a global financial hub.
The deal is also part of iFast’s broader 5-year plan to have a global business model.
«While the group has made substantial progress as a wealth management platform without some of the key advantages that the banks have, a lot more can be achieved if there is a bank within the group,» iFast said in the statement.
