MCB Bank shareholder sells stake for Rs7.5b

Transaction took place at one-year low share price of Rs115

KARACHI:

MCB Bank announced on Monday that one of its shareholders had sold its entire stake of 5.49% in the bank at Rs115 per share, which translated into total transaction size of Rs7.48 billion.

The existing seven shareholders including three companies and four individuals bought the offered 65.02 million shares, said the bank in a notification to Pakistan Stock Exchange (PSX).

The transaction took place at a one-year low share price of Rs115, which was hit in recent months. The share touched the year’s (52-week) high of Rs166.20 in February 2022, according to the bourse’s website.

The bank’s share price dropped 0.54% (or Rs0.64) to close at Rs117.12 at the PSX on Monday. Traders exchanged a mere 125,912 shares during the day.

Bugis Investments (Mauritius) Pte Ltd, a wholly owned subsidiary of Fullerton Financial Holdings Pte Ltd, has transferred and sold all of the 65.02 million ordinary shares.

“MCB Bank has undergone a change of ownership representing approximately 5.49% of its ordinary voting shares,” the notification read.

The existing owners of the bank, who bought the stake, are Nishat Mills Limited, Adamjee Insurance Company Limited and Nishat Paper Products Company Limited.

The four individuals, who bought the shares, include Ammil Raza, Mian Raza Mansha, Naz Mansha and Mian Umer Mansha.

The transaction was completed on Monday under a set of four share purchase agreements at a purchase price of Rs115 per share, on an aggregate consideration of about Rs7.48 billion, with and in accordance with the terms of prior approvals granted by the State Bank of Pakistan and Competition Commission of Pakistan.

The bank has reported a net profit of Rs19.85 billion (earnings per share of Rs16.75) for the nine-month period ended September 30, 2022. It was approximately 14% lower compared to Rs22.55 billion (earnings per share of Rs19.03) recorded in the same period of last year.

Published in The Express Tribune, December 13^th, 2022.

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