HBL Completes Takeover of its Foreign Subsidiary

Habib Bank Limited has acquired a 9.50 percent stake in Habib Allied Holding Limited (HAHL) at the cost of Rs. 581 million from the minority shareholder to convert it into a wholly-owned subsidiary of the bank, according to its quarterly report.

Habib Allied Holding Limited (HAHL), UK, is a subsidiary of Habib Bank Limited having four branches — two in London and one each in Birmingham and Zurich. It is the holding company of HBL Bank UK.

Habib Bank Limited entered into an agreement in May this year to purchase the entire shareholding of the minority shareholder of its foreign subsidiary—Habib Allied Holding Limited (HAHL).

HBL held 90.50 percent of the shareholding in HAHL previously, while the remaining 9.5 percent shareholding is owned by Allied Bank Limited. The bank acquired 9.50 percent of HAHL’s share capital owned by Allied Bank Limited in accordance with the deal.

The foreign banking operations of the Pakistani bank witnessed a transition of shareholding and mode of operations at different times in the past.

HBL established its first branch in the UK in 1961. In 2001, the UK branches of HBL and Allied Bank Limited transferred their business to Habib Allied International Bank (HAIB) and began trading as Habib Bank UK. HAIB acquired 100 percent shareholding in Habibsons Bank Limited (HSB), a bank incorporated in the UK.

Following the acquisition, the banking business of HAIB was merged with HSB in December 2014 through a statutory transfer of business and continued trading as Habibsons Bank. In September 2015, HAIB changed its name to Habib Allied Holding Limited. In December 2018, both the trading and registered name of Habibsons Bank was changed to HBL Bank UK Limited.