Six investors from the USA and Europe are keen on buying a combined 9.59% stake in Meezan Bank. In this regard, the investors are holding talks with Kuwait’s Noor Financial Investment over the possible purchase of the stake in Pakistan’s top Islamic bank.
Noor Financial currently owns 49.1% stake in Meezan Bank which is valued at $330 million as per Meezan’s market capitalization. Apart from Noor Financial, Pakistan Kuwait Investment Co and Islamic Development Bank hold major shares in Meezan Bank as well.
Meezan Bank is Pakistan’s biggest Islamic bank with a network of around 600 branches in over 150 cities.
The institutional investors interested in buying a stake in the bank include;
- Swedish asset manager Tundra Fonder.
- London-based RWC Partners.
- Cunniff & Goldfarb.
- New York-based Ruane.
Tundra Fonder already holds some shares in Meezan Bank through its Pakistan-focused investment fund.
Noor Financial confirmed that it is in talks with the foreign investors to sell some of its stake in Meezan Bank. It further requested Meezan Bank to contact State Bank of Pakistan over the sale of its shares.
The sources add that none of the named investors would buy more than 5% stake in the Pakistani lender. The reason behind this is to seek a quick approval from the banking regulator in Pakistan so the sale can be concluded as soon as possible.