Summit Bank completes acquisition of MyBank

59.3 per cent stake acquired for Rs2.5 billion.

KARACHI:

The Summit Bank Limited has completed acquisition of MyBank Limited’s 59.3 per cent shares for Rs2.5 billion on Monday.

Summit Bank Limited bought 314.7 million shares of issued paid-up capital of MyBank at Rs8 per share, according to a notice sent to the Karachi Stock Exchange.

The share price of MyBank closed at Rs2.05 during trade at the Karachi Stock Exchange – much lower than the price paid.

In December 2008, UAE-based group Suroor Investment made its first step in the domestic financial sector by acquiring Arif Habib Bank followed by Atlas Bank and now MyBank. The three banks have been merged and re-launched as Summit Bank.

Suroor Investment made an investment of more than $125 million over the last four years to enter the domestic financial sector. They also plan to make an additional investment of $50 million.

These shares have been acquired from Iqbal Ali Mohammad and other shareholders, according to the notice.

As a result of the change in shareholding of MyBank Ltd, seven new directors have been elected. The move is, however, subject to approval from the State Bank of Pakistan.

Summit Bank’s stock fell Rs0.15 to close at Rs2.65, while MyBank’s stock rose marginally by Rs0.05 to close at Rs2.05 during trade at KSE on Monday.

Published in The Express Tribune, April 5^th,  2011.