A consortium of financial institutions led by United Bank Limited (UBL) is acquiring 67.4 per cent shares of Khushhali Bank Limited (KBL), it emerged Thursday. The consortium, which comprises of UBL, Rural Impulse Fund II SA SICAV-FIS, ShoreCap II Limited, ASN-NOVIB Microcredit funds and Credit Suisse Microfinance Fund Management Company, has been declared as the highest bidder by the shareholding banks who would be selling 67.4 per cent of KBL stakes.
Prominent among the banks selling, KLB shares are National Bank of Pakistan (NBP), MCB Bank Limited, Summit Bank Limited, Allied Bank Limited and KASB Bank Limited. These banks, respectively, sold 23.5, 17.6, 0.6, 11.73 and 0.59 per cent of shares they held in KBL, a microfinance institution. After completion of the acquisition process, UBL’s direct shareholding in KBL would, approximately, become 29.7 per cent. The selling banks have accepted the consortium’s bid of Rs20.44 per share, approximately, and have issued a Letter of Acceptance to the acquiring consortium. The banker’s view this acquisition of KBL by UBL’s consortium as a move in the “right direction”. Khushhali Bank, the bankers said, was long suffering from lack of active and efficient management. “KBL is going into the right hands now,” commented an executive from one of the selling banks. The two sides, the sellers and acquirers, have notified the development to the managements of country’s three stock exchanges in Karachi, Lahore and Islamabad. Also, UBL has notified the same to its custodian in the Citibank as well as the London Stock Exchange. The consummation of the acquisition, however, would require the two sides seek regulatory approvals from the State Bank of Pakistan and Competition Commission of Pakistan. Also, a successful execution of the Share Purchase Agreement would be required. In UBL’s consortium, the Rural Impulse Fund II SA SICAV-FIS is represented in Pakistan by Incofin Investment Management Comm VA, ShoreCap II Ltd by Equator Capital Partners LLC), ASN-NOVIB Microkredietfonds by Triple Jump BV and Credit Suisse Microfinance Fund Management Company by Responsibility Global Microfinance Fund.
