Bahrain-based Islamic lender Bank Alkhair has secured the go-ahead from the State Bank of Pakistan to offload its stake in Pakistan’s Burj Bank.

Bank Alkhair will sell the stake to Al Baraka Pakistan (ABPL), a subsidiary of Bahrain's Al Baraka Banking Group.

The move comes after the shareholders’ approval of the merger between Burj Bank and ABPL. The merger, effective on 31 October 2016, creates a group with over $1.1bn in assets.

Bank Alkhair was a major shareholder of Burj Bank, followed by Jeddah’s Islamic Corporation for Development of the Private Sector who owns a 33.9% stake.

Bank Alkhair purchased a 22.2% stake in Burj Bank in June 2006, later raising its stake to 37.9% in March 2009.