KARACHI: JS Bank Limited resumed the process of acquisition of 24.88 percent shares of BankIslami Pakistan Limited (BIPL) as Sindh High Court has dismissed an application filed against this acquisition.
According to JS Bank Limited announcement at PSX, some applications were filed to block the lawful acquisition of majority shares and control of BankIslami Pakistan; however, the High Court of Sindh has dismissed the applications filed against the bank, thereby clearing all perceived roadblocks against the JS Bank with respect to the takeover of BIPL.
Accordingly, on Tuesday, the Next Capital on behalf of JS Bank Limited has announced to acquire 275,891,286 shares, some 24.88 percent of the paid up capital of BankIslami Pakistan Limited under the Securities ACT 2015 and Listed Companies Regulations 2017. As per announcement all the documents required under Schedule VIII of the Regulations are also being couriered to the SECP.
Board of directors of JS Bank, in November last year, showed the interest to acquire majority shares and control of BankIslami. Upon completion of due diligence, JS Bank’s board on March 3, 2023 announced the deal structure and public offer for 24.88 percent ordinary shares of BankIslami was made in exchange of shares of JS Global Limited and JS Investments Limited.
The process was delayed as on March 7, 2023, Sindh High Court granted interim injunction against the proposed acquisition as the plaintiffs had argued that one group cannot have control of two commercial banks. This application against this acquisition was dismissed on Tuesday and accordingly the JS has resumed the process of acquisition of BankIslami Pakistan.
Copyright Business Recorder, 2023
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