The owner of the ARY Group, Salman Iqbal has come to the fore as an aspiring investor in the loss-making Summit Bank.
The broadcaster has decided to try his luck in the banking sector after he revoked his plan to invest in the telecom sector which ultimately ended after long-standing negotiations between ARY and WorldCall.
According to the stock filing Salman Iqbal, owner of the ARY Group, has agreed to subscribe to up to 25% shares of Summit Bank Ltd at a price of Rs. 2.51 per share. The move came as part of a consortium led by Nasser Abdulla Hussain Lootah, a businessman from the United Arab Emirates, said a stock filing on Friday.
The consortium aims to acquire at least 51% shareholding in the bank, which is the second smallest of the 20 listed lenders in terms of the value of shares.
It will acquire the bank’s majority stake and management control by both subscribing to new shares as well as purchasing existing shares through a public offer at Rs. 2.51 apiece.
Last year, Summit Bank planned to sell at least 51% of its voting shares to a UAE-based investor at Rs. 2.51 per share as the Chairman of the Nasser Abdulla Lootah Group, Nasser Abdulla Hussain Lootah, approached the management with an offer to acquire at least 51% of the voting shares.
For the purpose of the proposed transaction, the acquirer and SBL have entered into a share subscription agreement. Pursuant to the share subscription agreement, Summit Bank limited shall issue, by way of without rights, 5,976,095,618 ordinary shares at a subscription price of Rs 2.51, which shall be offered to the acquirer and the minority shareholders of the bank.
In addition to the subscription of shares by the acquirer in terms of the share subscription agreement, the acquirer shall purchase shares from the bank’s shareholders pursuant to the offer. The bank management believed that the acquisition of Summit Bank is a major step toward the requisite capital injection in the bank.
Nasser Abdullah Hussain Lootah is the former Chairman and director of Summit Bank who already owns 0.51% shares in the bank. Besides, Suroor Investments Limited holds a 66.77% stake in the bank, while Rupali Bank owns 1.24% shares in the bank.
The bank is operating with 193 branches including 43 full-fledged Islamic branches of Summit Bank. The bank’s loss after tax for 2021 stood at Rs. 2.887 billion against Rs. 6.948 billion last year, indicating an improvement of 58%.
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