JS Bank – one of the fastest-growing banks in Pakistan – has received the approval from State Bank of Pakistan (SBP) to acquire a 7.7 percent shareholding in BankIslami from its existing sponsor Emirates NBD BANK PJSC.
The stock filing read, “We are pleased to inform that the Bank of Pakistan has granted its approval to JS Bank Limited to acquire 86.,316,964 ordinary shares (constituting 7.79% of the paid-up capital) of BankIslami Pakistan Limited from Emirates NBD Bank PJSC”.
JS Bank will purchase 86.31 million shares from Emirates NBD Bank PJSC at the rate of Rs. 13.24 per share making the aggregate sale consideration stand up to Rs. 1.14 billion. JS Bank’s shareholding will increase to 28.96 percent with the completion of the transaction.
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In March 2022, the management of JS Bank sought permission and approval from the State Bank of Pakistan and the Competition Commission of Pakistan (CCP) for the proposed investment in the paid-up capital of BankIslami by way of acquiring shares.
Important to note, BankIslami is already an associated company of JS Bank. Jahangir Siddiqui and Company Ltd, which is the parent entity of JS Bank, already owned a 21. 26pc stake in BankIslami at the end of December 2020. On the other hand, Emirates NBD Bank PJSC owns a shareholding of 13 percent or 144 million shares in BankIslami.
The proposed investment and acquisition of 7.79 percent paid-up capital of BankIslami remains subject to approval by shareholders of the company by way of a special majority at the upcoming annual general meeting of the company.
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