KARACHI: Fatima Fertiliser Company Ltd is going to conduct due diligence of Samba Bank Pakistan Ltd for the potential acquisition of its majority shareholding, the company said in a regulatory filing on Monday.

The fertiliser maker said it will evaluate and pursue — including as part of a consortium of parties — the potential acquisition of 84.51 per cent of Samba Bank, which has been put on sale by its Saudi Arabia–based parent company as part of its strategic review.

The share price of Fatima Fertiliser increased 1.21pc to Rs35.87 on Monday while the share price of Samba Bank inched up 0.08pc to Rs12.51.

Its previous majority owner, Samba Financial Group, merged with National Commercial Bank to become SNB early this year. The parent company announced on Sept 21 that it was considering all strategic options in relation to its shareholding in Samba Bank, including potential mergers, acquisitions, divestment and/or restructuring. SNB said on Oct 5 that it’d commence “an orderly well-managed divestment” of Samba Bank and appointed advisers to assist with the process.

Samba Bank is the fourth smallest among all listed lenders in terms of the total value of shares. Its net profit amounted to Rs356.5 million in July-September, down 22pc from the preceding quarter.

Based on its share price, the total value of Samba Bank amounted to roughly Rs12.6 billion on Monday.

Published in Dawn, December 21st, 2021