Jahangir Siddiqui & Co. Seek SBP’s Approval For Exchange of Shares With JS Bank

Jahangir Siddiqui & Co. Limited will file a formal application to the State Bank of Pakistan for its approval for the sale of shares of BankIslami Pakistan Limited to JS Bank Limited and an additional investment in new shares of JS Bank.

As the sponsor shareholder of BankIslami Pakistan, Jahangir Siddiqui & Co. Limited’s board of directors provided their consent and approval to sell the entire investment and shareholding of the company in the shares of Banklslami Pakistan Limited (i.e. 235,684,306 ordinary shares representing 21.26% of the issued and paid-up capital of BIPL) to its subsidiary JS Bank Limited.

On the other hand, the sponsor also decided to consider 266,747,498 ordinary shares of the face value of Rs. 10 per share each of JS Bank Limited in exchange (i.e. 1.1318 ordinary shares of JSBL for every ordinary share of BIPL) to be issued to the company as new other than rights and other than cash issue based on the valuation carried out by an approved and independent valuer.

All formalities pertaining to unfreezing and transfer of the company’s sponsor shares of BIPL to JSBL and deposit and freezing additional shares of JSBL are to be received as consideration and be fulfilled in accordance with the applicable laws, according to the stocking filling.

JS Bank approached JS&Co. Limited to acquire 21.26% shareholding in BankIslami.

After the possible acquisition of shares by JS Bank from its parent company, the banking entity will become the major shareholder of more than 50% in BankIslami, the third largest full-fledged bank in Pakistan.

Last year in November, JS Bank enhanced its shareholding by 7.7% in BankIslami by acquiring 86.3 million ordinary shares from its sponsor Emirates NBD BANK PJSC. Its overall shareholding increased to 28.96%.

The bank had purchased 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 is an associated company of BankIslami Limited and a subsidiary of Jahangir Siddiqui & Co. Limited.