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Friday June 21, 2024

Ithmaar Holding to sell off part of Faysal Bank stake to GFH Financial Group

By Erum Zaidi
June 01, 2024
A representational image of Faysal Bank building in Karachi. — Reporter/File
A representational image of Faysal Bank building in Karachi. — Reporter/File

KARACHI: Ithmaar Holding has decided to sell off a portion of its stake in Faysal Bank Limited (FBL) to GFH Financial Group BSC, as shareholders of the holding company have approved the transaction at its extraordinary general meet-ings (EOGM) held on May 28-29, 2024.

The proposed sale and/or transfer of 75 per cent of Ithmaar’s current stake in FBL (translating into around 50 per cent of the total outstanding shares of FBL, thereby the controlling interest) to GFH/ any of its subsidiaries or nominee companies, the FBL said in a notice sent to Pakistan Stock Exchange on Friday.

The proposed transaction is subject to all necessary regulatory approvals and also full compliance with all legal re-quirements in Pakistan as well as in the Kingdom of Bahrain / other relevant geographies, the bank said.

The EOGM of the shareholders of Ithmaar Holding were held on May 28, and May 29 about the planned sale/transfer of certain assets and liabilities of the Ithmaar to GFH Financial Group BSC.

Ithmaar Bank BSC (directly and indirectly through other group entities owns 66.7 per cent shares of Faysal Bank Lim-ited.“One of the agenda items of the EOGM, which has been approved by the shareholders of Ithmaar is the proposed sale and/or transfer of 75 per cent of Ithmaar’s current stake in FBL (translating into around 50 per cent of the total outstanding shares of FBL, thereby the controlling interest) to GFH/any of its subsidiaries or nominee companies,” the FBL said.

“The proposed transaction is subject to all necessary regulatory approvals and also full compliance with all legal re-quirements in Pakistan as well as in the Kingdom of Bahrain/other relevant geographies,” it said.

“In this regard, an agreement is planned to be formalised in the next few weeks (execution is subject to all regulatory and legal approvals,” it added. The bank said even after the execution of the transaction, FBL plans to maintain its current strategy for strong business growth through continued focus on the effective execution of its strategic corporate plan based on accelerated branch network expansion, focus on human resources, including continuity of leadership/senior management team, investment in technology and digital channels and top of the line customer service coupled with largest range of fully Shariah-compliant products all translating into FBL’s mission to be the best Islamic bank in Pakistan.