Arif Habib Corp to acquire 28.23pc shares of Silk Bank

KARACHI: The State Bank of Pakistan (SBP) has principally allowed Silk Bank Limited to sell its 28.23 percent shares to Arif Habib Corporation and 12.05 percent to Gourmet Group as sponsor shareholders of the bank, its official said on Tuesday.

The official said the bank submitted documents to the SBP with regards to the fit and proper test (FPT) of prospective investors, sponsors and underwriter.

“SBP has conveyed in principal approval for FPT of its incoming investors, namely Zulqarnain Chattha and Zubair Nawaz Chattha of Gourmet Group (12.05 percent) and Arif Habib Corporation Limited (28.23 percent) as sponsor shareholders of the bank,” said Uzman Chaudhary, Head of Investor Relations at Silk Bank.   

In July, Silk Bank entered into an underwriting arrangement with Arif Habib Corporation as part of its capital raising initiative.

Silk Bank is in the process of issuing 6.41 billion rights shares for Rs10 billion at Rs1.56/share – at a discount of Rs 8.44/share.

The bank has received approximately Rs4.9 billion in its subscription from the prospective investors, directors and public.

It has also credited the right shares to the public into their respective Central Depository Company (CDC) account/sub accounts maintained with the CDC and issued share certificates to physical shareholders against paid letter of rights.

Moreover, the board, in its meeting held in August, allocated unpaid rights of approximately Rs1.1 billion to Shaukat Tarin to subscribe either personally or through any other investor and called on the underwriters to pick up the unsubscribed rights amounting to Rs4.0 billion.

“The bank is confident with the injection of capital through the rights issue,” the official said.  The bank will meet its minimum capital requirements and capital adequacy ratio by the end of the year and consequently improve its performance.