SHC Allows JS Bank to Buy BIPL

On Monday, JS Bank Limited (PSX: JSBL) told Pakistan Stock Exchange that the Divisional Bench of the Sindh High Court (SHC) ordered the bank to re-argue the case under which the interim injunction was issued for the purchase of BankIslami Pakistan Limited (BIPL).

“The Divisional Bench of the honourable High Court of Sindh vide its order dated May 05, 2023, has directed to argue afresh the application under which the interim injunction was granted before learned Single Judge,” the stock filing added.

“It was further clarified that the said application would be argued in presence of the counsel representing the Defendants of the Suit 318 of 2023,” the document stated. Thus, the situation before to deciding the application would continue until the knowledgeable Single Judge decides it.

The plea stated that the Stay Order issued by the top Sindh court on March 6, 2023, for the matter indicated above is no longer in effect. When JS Bank acquired BIPL shares, the situation before deciding the application was restored. Accordingly, it can proceed as before issue of stay order and will remain so till any further ruling by the Honourable Judge in the existing litigation.

On March 7, 2023, SHC granted Plaintiffs Muhammad Ayub Tareen, Mohsin Balaghantwala, Asif Mannar, and AKD Investment Management Limited an interim injunction against ISBL’s proposed acquisition of majority shares and control of BIPL.

On March 15, 2023, SHC modified the temporary injunction to allow the Bank to complete the intended acquisition of majority shares and control of BIPL.

JS Bank stated on March 6 that it would swap shares in BankIslami with JS Global Limited and JS Investments Limited. Later, the bank offered BIPL minority stockholders monetary consideration.

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