Al Ansari Buys BFC Holding for $200 Million

Al Ansari Financial Services (AAFS), a leading integrated financial services group listed on the Dubai Financial Market (DFM) in the UAE, on Tuesday said that it has signed an agreement to purchase 100% of BFC Group Holdings W.L.L., (BFCGH), a foreign exchange and remittance group incorporated in Bahrain for $200 million.

The transaction is anticipated to close by Q1 of 2025, pending the necessary legal and regulatory approvals in the relevant jurisdictions where BFCGH operates, and the satisfaction of certain conditions precedent agreed between AAFS and BFCGH.

The group plans to secure financing under customary market terms to finance the acquisition, it said in a regulatory filing with DFM this morning. The acquisition will enable AAFS to expand its geographic presence and become the largest remittance and exchange provider in the GCC region by branch network.

The combined entity will have over 410 branches (a 60% increase on AAFS’s current branch network) across the UAE, Bahrain, Kuwait, and India, supported by a workforce of approximately 6,000 employees (a 25% increase on AAFS’s current workforce).

AAFS recognised BFCGH as a unique player due to its sizeable presence and significant market share across key GCC and Asian markets including Bahrain, Kuwait, and India. The acquisition is aligned with AAFS’s strategic growth pillars of expanding its geographic presence, growing its physical branch network and enhancing its service portfolio.

The integration of BFCGH with AAFS reinforces AAFS’s market leadership and unlocks new avenues for sustainable growth, demonstrating AAFS’s commitment to delivering long-term value to its shareholders.

The consolidated revenues of AAFS and BFCGH for FY 2023 amounted to approximately $385 million reflecting a 22% rise compared to AAFS’s reported revenue. Leveraging operating and cost synergies in the post-acquisition phase will significantly benefit AAFS.

Access to Wider Audience

AAFS Grop CEO Rashed Ali Al Ansari said that this strategic acquisition represents a pivotal moment in his company’s growth trajectory, establishing it as the leading foreign exchange and remittance service provider in the Gulf region.

By broadening their customer base and extending our services across the GCC and India, they aim to provide a wider audience with access to AAFS’s comprehensive remittance and foreign exchange solutions, he said.

“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,” he said.

BFCGH Managing Director and CEO Ebrahim Nonoo said that this strategic move highlights the value and potential of his 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. We look forward to seeing the remarkable achievements that will undoubtedly result from this acquisition,” he added.

Established in 1917, BFCGH was the first foreign exchange company and financial services institution in Bahrain and the GCC. It holds a leading position in foreign exchange and money transfer services in Bahrain.