Nasser Abdullah Hussain Lootah, a Dubai-based businessman has shown intention to acquire majority shareholding (at least 51 percent) of Summit Bank Limited.
Nasser Abdullah Hussain Lootah is currently chairman of the Summit Bank and owns 0.51 percent shares in the Bank.
"The Summit Bank Limited (the Target Company) has received a letter of intention dated 27 March 2020 from Nasser Abdullah Hussain Lootah (the acquirer) to acquire control of the Target Company (Summit Bank Limited) beyond the thresholds prescribed under Section 111 of the Securities Act, 2015", the Summit Bank said this in a notice sent to Pakistan Stock Exchange on Monday.
The intention has been notified to the Board of Directors of the Summit Bank Limited on March 27, 2020, the notice added.
Nasser Abdullah Hussain Lootah in his intention letter to Summit Bank said that he is writing to explore the possibility of acquiring at least a controlling stake in Summit Bank by subscribing to fresh equity in the Bank. "It is also envisaged that this equity injection will enable the Bank to comply with the Minimum Capital Requirements and Capital Adequacy Ratio requirements as required by the State Bank of Pakistan", the letter added.
Topline Securities Limited has been appointed as the Manager of Offer by Nasser Abdullah Hussain Lootah in accordance with the provision of the Securities Act 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeover) Regulations, 2017.
"On behalf of Mr. Lootah, we are pleased to submit a Public Announcement of Intention to acquire at least 51 percent of the issued and paid up capital of the Summit Bank Limited along with management control", Topline Securities said.
This public announcement of intention to acquire voting shares/control of Summit Bank Limited is subject to obtaining the requisite regulatory approvals including clearance of fit and proper criteria from State Bank of Pakistan, the Securities and Exchange Commission of Pakistan and Competition Commission of Pakistan, the Topline Securities said adding that the announcement of intention may be withdrawn, if the requisite approvals are not granted by the concerned regulatory authorities.
This intended acquisition by the acquirer is through a proposed subscription of new ordinary shares in Summit Bank Limited by way of fresh equity injection. Post subscription, the acquirer intends to acquire atleast 51 percent shareholding and control in the bank. The acquirer already owns 0.51 percent shares in the Bank. The remaining shares shall be acquired through a combination of subscription of new shares in the Bank and acquisition of existing shares from the minority shareholders by way of a public tender offer.
Suroor Investments Limited, a Mauritius based investment firm, acquired 59.41 percent stake in Arif Habib Bank Limited from Arif Habib Securities Limited on March 31, 2010 and Arif Habib Bank was rebranded as Summit Bank Limited on August 18, 2010. Arif Habib Bank was formed in October 2007, when Arif Habib Securities Limited under the Scheme of Amalgamation set by the State Bank of Pakistan acquired the Pakistan Operations of Rupali Bank Limited.
Summit Banks parent company, Suroor Investments Limited, later acquired majority shares of MyBank Limited and Atlas Bank Limited in Pakistan. The operations of these two banks were then merged under the single umbrella of Summit Bank Limited, thus expanding the Bank's network to more than 193 Branches across the country.