Summit Bank has decided to enhance its authorized capital by over three times after the approval of regulators and shareholders.
According to the stock filing, its Board of Directors has allowed the bank’s authorized capital to be increased by over threefold from Rs. 27 billion to Rs. 90 billion.
This development is for the processing of the transactions of the shares from one stakeholder to another who has expressed an interest in making an investment in the bank.
The board also approved the issuing of 5.9 billion ordinary shares of the bank at the rate of Rs. 2.51 per share by way of without right offers to Naser Abdullah Hussain Lootah, the acquirer of the major shares along with minority shareholders. The management and board of Summit Bank planned to sell out 51 percent of its major stakes to its UAE-based investor Nasser Abdullah Hussain Lootah.
The investor already owns 0.51 percent shares in the bank and will make a fresh injection of the capital through a subscription of the ordinary shares that the board offered him at a discounted price of Rs. 2.51 per share.
Subsequent to the process of shares subscription, the acquirer will purchase the existing shares from the minority shareholders through a public tender offer to bring its shareholding to at least 51 percent and gain management control.
The value of Summit Bank on the Pakistan Stock Exchange is approximately Rs. 7.75 billion. The bank has not issued financial results since the quarter ending on 31 December 2018. It posted an annual net loss of Rs. 8.7 billion in 2018, which followed net losses of Rs. 1.9 billion and Rs. 2.1 billion in the preceding two years.
At present, Suroor Investments Limited holds 66.77 percent stakes in the bank and Rupali Bank owns 1.24 percent shares in it.
