KARACHI: A Dubai-based businessman has expressed interest in acquiring at least 51 percent stakes in Summit Bank which will lead to its acquisition along with management control, the bank announced on Tuesday.
Nasser Abdulla Hussain Lootah already holds 0.51 percent, or 13 million stakes, in the bank.
However, he now plans to increase the shareholding to at least 51 percent through subscription and public offer to get the bank’s management control.
“His Excellency Nasser Abdulla Hussain Lootah has agreed to acquire at least 51% shareholding in Summit Bank Limited through a combination of (i) Subscription of new shares issued by the Bank by way other than rights offer at a discounted price to minority shareholders of the Bank and His Excellency; and (ii) Acquisition of existing shares from the shareholders of the Bank by way of a public offer in accordance with the applicable laws relating to substantial acquisition of voting shares of listed companies,” the Summit Bank said in a statement released on Tuesday.
Summit Bank is the subsidiary of Suroor Investment Limited, a Mauritius-based firm, which owns 66.77 percent of the issued share capital of the company, according to the bank’s latest annual report.
Lootah submitted his offer and signed a share subscription agreement with the bank in October 2021. The bank also plans to issue 5,976.096 million new ordinary shares to enable the flow of fresh equity.
“I believe that once the Bank receives the requisite equity, all the commercial and business aspects of the Bank shall witness a significant growth in FY 2022,” Waseem Mehdi Syed, Summit Bank chairman, was quoted as saying in the annual report.
The bank’s board of directors approved Lootah’s offer at a discount price of Rs2.51 per share in October 2021. The value of the deal is around Rs15 billion.
The UAE businessman has appointed Topline Securities as the manager to acquire over 1.3 billion ordinary shares of the bank, according to the tender offer made to the Pakistan Stock Exchange on March 18, 2022.
“This is indeed a major step towards the requisite capital injection in the Bank. We are on a fast-paced path to recovery that shall include rebranding, new corporate identity and conversion into a full-fledged Islamic Bank,” Jawad Majid Khan, president and chief executive officer of Summit Bank, said in statement on Tuesday.
The UAE business tycoon, who is acquiring Summit Bank in his personal capacity, already has diversified business interests across travel, shipping, real estate, mineral water, logistics, cargo handling, information technology, interactive media, production and brand communication.
The transaction is expected to take about 60 days, subject to receipt of all regulatory and corporate approvals involving the State Bank, Securities and Exchange Commission and Competition Commission of Pakistan.
Summit Bank currently has a network of 193 branches across Pakistan. 43 of them in 23 cities are offering Islamic banking opportunities.
The bank has already decided to completely convert itself into an Islamic bank by 2023.