The State Bank of Pakistan (SBP) has granted approval to JS Bank for acquiring a 7.7 percent shareholding in BankIslami from its existing sponsors Emirates NBD BANK PJSC.
The stock filing read, “We are pleased to inform that the Bank of Pakistan has granted its approval to JS Bank Limited to acquire 86.,316,964 ordinary shares (constituting 7.79% of the paid-up capital) of BankIslami Pakistan Limited from Emirates NBD Bank PJSC”.
In March 2022, the management of the bank sought permission and approval from the State Bank of Pakistan and the Competition Commission of Pakistan (CCP) for the proposed investment in the paid-up capital of BankIslami by way of acquiring shares.
JS Bank will purchase 86.31 million shares from Emirates NBD Bank PJSC at the rate of Rs. 13.24 per share making the aggregate sale consideration stand up to Rs. 1.14 billion. JS Bank’s shareholding will increase to 28.96 percent with the completion of the transaction.
JS Bank is an associated company of BankIslami Limited as its parent company, Jahangir Siddiqui & Co. Limited already held a shareholding of 21.26 percent in BankIslami, which constitutes 235 million shares in the bank.
On the other hand, Emirates NBD Bank PJSC owns a shareholding of 13 percent or 144 million shares in BankIslami, according to the website. Other stakeholders include Ali Hussain and SAJ Capital Management Ltd with 24.37 percent shareholding and Randeree Family with 14.25 percent stakes.
The proposed investment and acquisition of 7.79 percent paid-up capital of BankIslami remains subject to approval by shareholders of the company by way of a special majority at the upcoming annual general meeting of the company.
BankIslami Limited posted its highest ever profit after tax of Rs. 2.13 billion in 2021, demonstrating a growth of 25.1 percent from a profit of Rs. 1.703 billion posted during the year 2020.
The year 2021 proved to be a successful year for the bank wherein the bank not only crossed the Rs. 300-billion landmark in deposits by closing its deposit book at Rs. 344.8 billion as of December 31, 2021, depicting a growth of 21.6 percent from last year, but it also crossed the deposit per branch benchmark of Rs. 1 billion at the end of the year 2021.
