Tender offer issued: UAE investor seeks to acquire 51pc stake of Summit Bank

KARACHI: Nasser Abdulla Hussain Lootah, a Dubai-based businessman, has released tender offer to acquire at least 51 percent of stakes of Summit Bank.

According to Summit Bank statement issued Tuesday, Nasser Abdulla Hussain Lootah has agreed (in terms of a share subscription agreement dated October 4, 2021) to acquire at least 51 percent shareholding in Summit Bank Limited through a combination of subscription of new shares and acquisition of existing shares from the shareholders.

As per proposed plan, Nasser Abdulla Hussain Lootah will subscribe new shares issued by the Bank by way other than rights offer at a discounted price to minority shareholders of the bank.

In addition, existing shares from the shareholders of the Bank will be acquired by way of a public offer in accordance with the applicable laws relating to substantial acquisition of voting shares of listed companies.

Summit Bank has also made the tender offer announcement to the Pakistan Stock Exchange on March 18, 2022.

In October last year, Nasser Abdullah Hussain Lootah had shown intention to acquire majority shareholding of Summit Bank Limited. The offer was communicated to the Board of Directors, which was considered at the emergent board meeting held on October 4, 2021. The board approved the offer at a discount price of Rs 2.561 per share.

For the purpose of the proposed transaction, the acquirer and SBL have entered into a share subscription agreement dated October 4, 2021. Pursuant to the share subscription agreement, Summit Bank limited shall issue, by way of without rights, offer 5,976,095,618 ordinary shares at a subscription price of Rs 2.51, which shall be offered to the acquirer and the minority shareholders of the banks.

In addition to the subscription of shares by the acquirer in term of the share subscription agreement, the acquirer shall purchase shares from the Bank’s shareholders pursuant to the offer.

On this development, Jawad Majid Khan President & CEO Summit Bank has said that this is indeed a major step towards the requisite capital injection in the Bank. “We are on a fast-paced path to recovery that shall include rebranding, new corporate identity and conversion into a full-fledged Islamic Bank”, he added.

As on December 31, 2022, some 193 branches including 43 full-fledged Islamic branches of the Summit Bank were operational. The bank’s loss after tax for 2021 was Rs. 2.887 billion against Rs. 6.948 billion last year, indicating an improvement of 58 percent.

The bank’s year end deposits improved by Rs. 7.596 billion or 7.46 percent against last year end levels to end at Rs. 109.484 billion as at December 31, 2021.

Copyright Business Recorder, 2022