UBL Consortium acquires Kushhali Bank stake from other banks

Karachi, June 06, 2012 (PPI-OT): The Consortium of United Bank Ltd. (UBL) has executed a sale purchase agreement with banks bearing holding of Khushhali Bank Ltd. (KBL) on June 04, 2012.

According to Alfalah Securities Limited, the said Consortium comprises of UBL, ASN-NOVIB Microkredietfonds, and responsibility Global Microfinance Fund, Rural Impulse Fund II S.A. SICAV-FIS and Shore Cap II Ltd. A cumulative of 67.4% holding of KBL has been purchased from National Bank (NBP) (23.5% shareholding), MCB Bank (17.6%), Allied Bank (ABL) (11.73%), Standard Chartered Bank (SCBL) (4.7%), Askari Bank Ltd. (AKBL) (2.9%), Habib Metropolitan Bank (HMB), Faysal Bank (FABL) (0.88%), KASB Bank (0.59%), Silk Bank (0.59%) and Summit Bank at a price of ~PkR 20.44 per share.

UBL already held 20 million shares (11.74% holding) of KBL which has increased to 29.69% as a result of the purchase deal while the cumulative holding of the Consortium has increased to 79.2%. After acquiring the major stake in KBL, the UBL Consortium intends to capitalize on the synergy to be attained and is likely benefit from acquiring KBL by added penetration in the Microfinance segment. The break up value of KBL is PkR 13.0 per share as at Dec 31, 2012 with total paid-up capital of PkR 1.7 bn.

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