KARACHI, Jan 5 The Board of Directors of National Bank of Pakistan has approved purchase of NIB Bank's shareholding of 27 per cent in National Fullerton Asset Management Limited (NAFA).

That would involve 6.75 million shares to be bought at a price ranging Rs37 to Rs43.10 per share.

Notices, released by the two banks separately at the stock exchanges on Tuesday informed about the proposed deal which was subject to signing of a share purchase agreement and the completion of all requisite regulatory approvals.

And the NIB notice added that the exact price and documentation would be finalised over the next few weeks.

NAFA was founded in 2005 by NIB along with NBP and Alexandra Fund Management Limited. The target Fund (NAFA) currently manages eight fixed income and equity open-end funds.

The NIB notice elaborated that it had acquired 100 per cent ownership of PICIC Asset Management Company (PICIC AMC).

Consequently, since 2007, NIB had acquired interests in two asset management companies.

“Under the relevant Non-Bank Finance Companies (NBFC) laws, a group can not hold more than one asset management services licence,” NIB stated and added that the bank's board had decided to divest its interests in NAFA to comply with the NBFC laws and the directives of the SECP. NAFA was rated AM2- (high management quality) by PACRA, and held Rs12.6 billion of assets under management.