UBL-led group to acquire Khushhali Bank
Consortium to buy 67.4% stake for Rs2.35 billion.
KARACHI:
A consortium, led by United Bank Limited (UBL), has been selected for the acquisition of a majority stake in Khushhali Bank Limited (KBL).
According to a notice issued to the Karachi Stock Exchange, the consortium was selected as the highest bidder for a 67.4% shareholding – almost 115 million shares – in the microfinance institution.
The shares will be acquired for a total investment of Rs2.35 billion ($26 million) at an approximate price of Rs20.44 per share, according to Global Securities. The deal prices KBL as a whole at Rs3.48 billion.
The authority has been notified of the acquisition of KBL by a consortium comprising UBL, Incofin Investment Management, Shorecap II Limited, ASN-NOVIB Microkreditfonds and Credit Suisse Microfinance Fund.
According to AKD Securities analyst, Anum Dhedhi, UBL may be looking for synergies with its branchless banking operations with the acquisition, along the lines of Telenor Pakistan which owns a majority stake in Tameer Microfinance Bank.
In the first half of 2011, the State Bank of Pakistan had invited expressions of interest from strategic investors for the transfer of a 79.2 per cent stake in KBL along with management control.
Khushhali Bank Limited is the largest microfinance bank in Pakistan, with geographical outreach to over 90 districts through 109 branches.
Published in The Express Tribune, February 25th, 2012.
A consortium, led by United Bank Limited (UBL), has been selected for the acquisition of a majority stake in Khushhali Bank Limited (KBL).
According to a notice issued to the Karachi Stock Exchange, the consortium was selected as the highest bidder for a 67.4% shareholding – almost 115 million shares – in the microfinance institution.
The shares will be acquired for a total investment of Rs2.35 billion ($26 million) at an approximate price of Rs20.44 per share, according to Global Securities. The deal prices KBL as a whole at Rs3.48 billion.
The authority has been notified of the acquisition of KBL by a consortium comprising UBL, Incofin Investment Management, Shorecap II Limited, ASN-NOVIB Microkreditfonds and Credit Suisse Microfinance Fund.
According to AKD Securities analyst, Anum Dhedhi, UBL may be looking for synergies with its branchless banking operations with the acquisition, along the lines of Telenor Pakistan which owns a majority stake in Tameer Microfinance Bank.
In the first half of 2011, the State Bank of Pakistan had invited expressions of interest from strategic investors for the transfer of a 79.2 per cent stake in KBL along with management control.
Khushhali Bank Limited is the largest microfinance bank in Pakistan, with geographical outreach to over 90 districts through 109 branches.
Published in The Express Tribune, February 25th, 2012.