In this regard, UBL will carry out an exercise of due diligence of Samba Bank Limited as a regulatory requirement for the evaluation of the banks’ operations and the value of assets.
According to a notification issued to the Pakistan Stock Exchange (PSX), the State Bank of Pakistan (SBP) has granted in-principle approval to United Bank Limited to commence the due diligence of Samba Bank for the potential acquisition of an 84.51 percent shareholding, which is currently owned by Saudi National Bank.
Fatima Fertilizer Group was the first to approach Samba Bank in response to the offer of its parent group having a plan to divest its shareholding in the bank.
A couple of weeks later, a few other investors also expressed their interest in having a stake in the bank. Subsequently, Fatima Fertilizer Group formed a consortium along with Gulf Islamic Investments LLC and the Management Group — the present management of the company.
The fertilizer giant had announced that it will go for the initial exercise of conducting due diligence of the bank with the permission of the State Bank of Pakistan. The company will also hire advisors and consultants to carry out necessary disclosures and regulatory steps/procedures, obtain regulatory approvals and carry out negotiations.
Samba Bank is likely to attract more banks for share acquisition as the bank enjoys a good standing in the local market coupled with an outstanding performance.