Dubai Bank is reportedly planning to sell its stake in BankIslami Pakistan to Jahangir Siddiqui and Company (JSCL) and another unnamed shareholder of BankIslami Pakistan.
The bank intends to offload 144.2 million shares in BankIslami Pakistan, under its shareholders’ deal that mandates a right of first refusal on a proportionate basis.
The stake to be disposed off amounts to 14.3% of the total issued shares of BankIslami Pakistan.
Dubai Bank was the largest shareholder in BankIslami till the end of last year with a stake of 25%, followed by JSCL who had a 21.2%holding, and two individuals owning a stake of 9.8% each.
After BankIslami Pakistan ran its right shares issue on April 30 to comply with the central bank’s capital adequacy requirements, its shareholders’ equity increased to PKR9.9bn. However, it is still uncertain as to whether Dubai Bank subscribed to the newly issued right shares.
Dubai Bank was taken over by Emirates NBD in October 2011, offering the latter a 24.8% holding in BankIslami Pakistan through Dubai Bank.
The process to merge Dubai Bank with Emirates Islamic Bank, which was agreed to in April 2012, is currently under progress.