KARACHI, Feb 19: Saudi investor Samba Group will acquire 68 per cent stakes in the Crescent Commercial Bank Limited (CCBL) after getting 600 million new ordinary shares of the bank.

This was decided in the extra-ordinary general meeting of the CCBL held on Feb 9, and a special resolution was passed, by which the authorised share capital of the bank was increased.

The resolution further authorised to issue 600 million ordinary shares of Rs10 per share to the Samba Financial Group of Saudi Arabia.

In November 2006, the CCBL board of directors had approved an investment of Rs6 billion in the bank by the Samba group.

The deal will be completed after the approval of the State Bank of Pakistan, the Security Exchange Commission of Pakistan and the Saudi Monetary Authority.

On completion of the deal, the bank’s issued and paid-up capital will increase to Rs8.8 billion. The shares, to be issued to the Samba, are ordinary shares in a single transaction, resulting in Samba owning 68 per cent of the bank’s equity.Following the investment, the bank’s board will be re-constituted accordingly to reflect the revised ownership structure and will be in accordance with the requirements of Pakistani and Saudi regulatory authorities.

Samba is a premier financial group of Saudi Arabia with a market capitalisation of $22.4 billion and shareholders equity of $3.9 billion.