KARACHI: United Bank Ltd (UBL) has received the regulatory nod to commence due diligence of Samba Bank Pakistan Ltd for the potential acquisition of its majority shareholding, it said in a stock filing on Wednesday.

The fourth largest bank in terms of market capitalisation is looking to buy an 84.51 per cent stake in Samba Bank, which has been put on sale by its Saudi Arabia-based parent company as part of its strategic review.

In the last week of December 2021, Fatima Fertiliser Company Ltd also expressed its intention to acquire 84.51pc shares in Samba Bank as part of a consortium that included the participating members of the bank’s management and Gulf Islamic Investments.

The share price of UBL decreased 0.13pc to Rs140.46 on Wednesday while the share price of Samba Bank inched up 2.25pc to Rs12.70.

Its previous majority owner, Samba Financial Group, merged with National Commercial Bank to become SNB in early 2021. The parent company announced on Sept 21, 2021 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, 2021, that it’d commence “an orderly well-managed divestment” of Samba Bank and appointed advisers to assist with the process.

Samba Bank is the fifth 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 Rs12.8 billion on Wednesday.

Published in Dawn, January 27th, 2022



Updated 20 May, 2022

TTP peace talks

ANOTHER attempt to sue for peace with the outlawed TTP is being made, again facilitated by the Afghan Taliban that...
20 May, 2022

Beyond the law

THE senior judiciary should take care not to overreach in its zeal to ‘fix’ issues it ideally need not worry...
20 May, 2022

Political musical chairs

YET another political crisis is brewing in Balochistan, where old rivals Jam Kamal Khan Alyani and Sardar Yar...
Updated 19 May, 2022

To be or not to be

The same decision taken weeks or months from now will have far more devastating consequences.
19 May, 2022

Impact on Punjab

THE Supreme Court judgement interpreting the issue of disqualification of parliamentarians under Article 63A of the...
19 May, 2022

Forest fires

THOUGH spot and forest fires have become a perennial phenomenon especially in peak summer, the recent blazes —...