Summit Bank has signed an agreement with a UAE-based investor to sell off at least 51% controlling interest. According to a regulatory filing, the board of directors have agreed to sell the shares at Rs2.51 per share.
Summit bank has the lowest number of assets out of the listed banks. The agreement signed on Monday allows Nasser Abdulla Hussain Lootah, subscribe to new ordinary shares through fresh equity injection. Nasser Abdulla is currently an owner of 0.51pc shares in the bank.
Following the subscription, the acquirer will increase its shareholding to at least 51pc and gain management control. This purchase from minority shareholders will be carried out through a public tender offer.
Head of Research at JS Global Amreen Soorani said that it is not possible to determine the final size of the transaction at this stage.
Summit Bank is valued at approximately Rs7.75 billion on the Pakistan Stock Exchange (PSX). Its share price rose by 13% to Rs2.94 on Monday. The price has increased by nearly 22% in the last week.
The last time the bank issued its financial results was at the end of the quarter on Dec 31, 2018. The bank reported an annual net loss of Rs1.9bn in 2016, Rs2.1bn in 2017 followed by Rs8.7bn in 2018.
