Business

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

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

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

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

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

JS Bank approached JS&Co. Limited about acquiring a 21.26% stake in BankIslami.

Following the possible acquisition of shares by JS Bank from its parent company, the banking entity will become a major shareholder in BankIslami, Pakistan’s third largest full-service bank.

In November of last year, JS Bank increased its stake in BankIslami by 7.7% by purchasing 86.3 million ordinary shares from its sponsor, Emirates NBD BANK PJSC. Its overall stake has risen to 28.96%.

The bank purchased 86.31 million shares from Emirates NBD Bank PJSC for Rs. 13.24 per share, for a total sale consideration of Rs. 1.14 billion.

JS Bank is a subsidiary of Jahangir Siddiqui & Co. Limited and a subsidiary of BankIslami Limited.

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