Bank Alfalah Limited (BAFL), one of Pakistan’s largest commercial banks, has withdrawn its public announcement of intention (PAI) to acquire a majority stake in Samba Bank Limited.
The development comes following Saudi National Bank (SNB) decision to terminate plans to divest its stake in Samba Pakistan.
“The State Bank of Pakistan (SBP) had granted BAFL in-principle approval for the due diligence of Samba in respect of the proposed acquisition by BAFL of SNB’s approximately 84.51% ordinary shares in Samba.
“However, SNB has terminated the process for the sale of SNB’s equity stake in Samba. Consequently, Arif Habib Limited, as Manager to the Offer, on behalf of BAFL, has submitted the withdrawal of BAFL’s earlier public announcement of intention to acquire SNB’s shareholding in Samba,” BAFL said in a notice provided to the Pakistan Stock Exchange (PSX) on Thursday.
BAFL said that the aforesaid withdrawal of its PAI has been published in media and Nawa-i-Waqt on November 14th 2024.
On Tuesday, SNB terminated the process for the sale of its equity stake in its subsidiary i.e. Samba Pakistan.
“We have been notified that after completion of due diligence and an exploration for the sale of its shares in Samba Bank Limited (Samba Pakistan), the Saudi National Bank, as the majority shareholder of Samba Pakistan are terminating the process for the sale of SNB’s equity stake in Samba Pakistan,” Samba said in a notice to the bourse.
Earlier in April, BAFL submitted a PAI to acquire a majority stake in Samba Bank Limited.
Following BAFL’s submission, the SBP in May granted its approval to BAFL to conduct due diligence on Samba Bank Limited.
Back in 2021, Samba Bank had received firm intention from a consortium comprising participating members of the management of Samba Bank Limited, Fatima Fertilizer Company Limited, and Gulf Islamic Investment LLC to acquire control of 852.040 million voting shares, representing 84.51% of paid-up capital of the bank.
However, that deal did not pan out.
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