JS Bank, one of the fastest-growing banks in Pakistan, has resolved to acquire a larger stake in Bank Islami Pakistan Ltd. (BIPL) from its existing sponsors Emirates NBD BANK PJSC. This is subject to necessary corporate/regulatory consents and approvals.
According to a notification issued to Pakistan Stock Exchange (PSX), 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. The shares constitute to 7.79 percent paid-up capital.
The proposed investment and acquisition of 7.79 paid-up capital of BIPL remains subject to approval by the shareholders of the Company by way of special majority at upcoming Annual General Meeting of the Company (which is proposed to be held on March 30, 2022 at Karachi) as well as permission of the State Bank of Pakistan and the Competition Commission of Pakistan and final consent from Emirates NBD Bank PJSC.
Read more: JS Bank wins JP Morgan award for outstanding services
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.
In case, JS Bank receives the go-ahead from the State Bank of Pakistan and the Competition Commission of Pakistan along with a nod from its own shareholders by way of a special resolution, the JS Group will likely be in control of 29.05pc shareholding in the Shariah-compliant lender.
JS Bank’s achievements
The year 2021 proved to be a successful year for the bank. According to its 2021 financial reports, the bank recorded a Rs. 2209 million profits before taxation. This was a Rs. 186 million increase from last year as in 2021, the bank’s profit before taxation was Rs. 2023 million.
Other than that, JS Bank has received the 2021 USD Clearing Elite Quality Recognition Award for its Outstanding Achievement by JP Morgan.
The award was presented to Basir Shamsie, President & CEO – JS Bank by Amin Khowaja, CEO – JP Morgan in a recent event held at JS Bank Head-office in Karachi.
Read more: JS Bank wins JP Morgan award for outstanding services