Escorts Investment Bank has terminated the sale-purchase deal with the interested acquirers of the shareholders in the bank — Syed Sabur Rehman (Chairman, Progressive Group) and JR Dallas Wealth Management.
According to a stock filing, the bank’s major shareholder, Bahria Town is not interested to sell its stake to the interested parties which it intimated through termination notice of the deal.
In September 2021, the Escorts Investment Bank received a Public Announcement of Intention of acquiring shares in the bank which are held by Bahria Town (Private) Limited.
In July 2017, Bahria Town acquired more than 50 percent stake in Escorts Investment Bank. The new owners injected handsome capital into the bank to gain financial stability of operations and the business. The bank expanded its branch network and offered various services to the customers.
Despite inheriting huge losses, the bank continued to make revenues from the available options and reduced the losses in each passing quarter. The bank reduced its losses to Rs. 7 million by the end of the third quarter of 2021 as compared to Rs. 20 million losses reported in the same period of 2020. The bank is likely to make its first profit in 2022.