With reference to the previous disclosure dated 23rd August 2020 pertaining to the subject, GFH Financial Group would like to inform its shareholders and the markets that it had initiated the transaction for the acquisition of an additional 21.8% stake in Global Banking Corporation B.S.C. (“GB Corp”) in the month of January 2020, giving the Group a majority stake of 50.4%. The acquisition has been done through several deals with a total value of US$21.6 million, and GB Corp’s shareholders’ approval was obtained in March 2020.

It is worth to mention that the process of shares registration will be reflected with the change of license of GB Corp to an Investment Firm license, thus, the disclosure on the acquisition has been made after obtaining the approval of the concerned authorities.

The acquisition of additional stake in GBCORP resulted in a bargain purchase and the Group has recognized negative goodwill of US$ 8,418 thousand and net cash inflow of US$ 32,856 thousand.