Habib Bank Limited (HBL) has continued its aggressive style of doing business as its subsidiary Habib Asset Management Company has offered the deal of acquiring PICIC Asset Management Company at a whopping price of Rs 4100 million.
HBL and NIB Bank, the parent company of PICIC Asset Management Company, officially announced the deal in the making which has been finalized principally at the end of buyers and sellers though its completion is subject to the approval of Security and Exchange Commission of Pakistan (SECP).
The board of directors’ meeting of NIB Bank in the meeting held today said that it has decided to sell out its subsidiary to HBL Asset Management Company but it has to negotiate regulatory issues before signing the sale purchase agreement with HBL Bank.
In February 2015, NIB Bank announced its intention to sell out its subsidiary PCICI Asset Management after it disclosed that two other parties had showed interest in buying its subsidiary.
Later in May, MCB-Arif Habib Savings and Investment Limited announced officially its intention to acquire PICIC Asset Management Company Limited. In this regard, the company sought permission from Security Exchange Commission of Pakistan (SECP) to conduct due diligence of PICIC investment Ltd.
The situation is surprising as NIB Bank has decided to make a deal with HBL’s subsidiary however the position of HBL Asset Management Company will be strong in the market mainly over competitors.