Summit Bank’s acquisition approved

KARACHI: The board of directors of the Summit Bank Limited has approved the execution of the exclusivity agreement with the potential investor to acquire a majority stake in the bank, a bourse filing said.

“The execution of the proposed transaction is subject to due diligence and all regulatory and corporate approvals,” the notice issued by the bank to the Pakistan Stock Exchange (PSX), after the 96th board meeting of the bank, said.

Dubai-based businessman and the sitting chairman of the Summit Bank Nasser Abdullah Hussain Lootha, in another notification on Monday, had expressed his intention to acquire a controlling stake in the bank by subscribing to fresh equity in the bank, while ensuring that the bank complies with the minimum capital requirements and capital adequacy ratio prescribed by the State Bank of Pakistan.

Lootha said he wanted to increase his holding in the bank to 51 percent. Currently, the bank’s chairman has 0.51 percent shares in the bank. The potential acquisition would inject fresh capital into the bank and help it meet the minimum capital requirement.