KARACHI: Pakistan’s Fatima Fertilizer Company plans to acquire Samba Bank Pakistan (SBL), a subsidiary of Saudi National Bank (SNB), after evaluation and due diligence of the bank, a stock filing on Monday said.
Last month, Pakistan’s central bank granted approval to SNB, the immediate parent company of Samba Bank, to start the sell-off process of SBL and undertake due-diligence.
SBL is a subsidiary of SNB, formally SAMBA Financial Group (SFG), which holds 84.51 percent shares of the bank as of September 30, 2021.
On Monday, according to a material disclosure submitted by the company to the Pakistan Stock Exchange, the Board of Directors of Fatima Fertilizer accorded “in-principal approval to the Company (Fatima) to evaluate and pursue (including as part of a consortium of parties) the potential acquisition of the majority shareholding (i.e. approximately 84.51 percent) of Samba Bank Limited.”
The company is allowed to evaluate and conduct a due diligence of Samba Bank prior to the approval of the final transaction.
The acquisition of SBL is subject to “obtaining the requisite permission of the State Bank of Pakistan, appoint advisers and consultants, carry out necessary disclosures and regulatory steps/procedures, obtain regulatory approvals and carry out negotiations.”
“Furthermore, the Board authorized persons to take necessary actions and steps prior to final approval of the Board for the proposed transaction,” the filing added.
SNB in September this year announced that it was considering all strategic options in relation to its shareholding in Samba Pakistan Limited, including potential mergers, acquisitions, divestment and/or restructuring as part of a strategic review. Subsequently, SNB announced that it had decided to divest SBL.
SNB will commence an orderly and well-managed divestment of SBL subject to final board evaluation of the offers received, the bank has informed its shareholders, saying it had appointed advisers to assist the SBL management with the process and as necessary, provide consultancy to the management of the Bank on engagements with regulators in Pakistan.
TSBL, which has a network of 43 branches located in 14 major cities across the country, will be offered for sale to potential buyers after the evaluation of the bank’s assets and liabilities.
SFG, from Saudi Arabia, entered into a legally binding merger agreement with The National Commercial Bank (NCB) of Saudi Arabia in October 2020, according to a financial report of Samba Bank.
As per the agreement, SGF was merged into NCB with effect from April 2021 in accordance with the applicable laws of the kingdom and NCB was renamed the Saudi National Bank from the effective date of merger.
Consequent to the merger, all assets and liabilities of SFG, including its shareholding in the Bank, stood vested in SNB by operation of law and SFG ceased to exist from the effective date of merger.
Pakistan’s Fatima Fertilizer to acquire Saudi Samba Bank from Saudi National Bank
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Pakistan’s Fatima Fertilizer to acquire Saudi Samba Bank from Saudi National Bank
- Last month, Pakistan’s central bank granted approval to Saudi National Bank to start the sell-off process of SBL and undertake due-diligence
- SNB in September this year announced that it was considering all strategic options in relation to shareholding in Samba Pakistan Limited
Pakistan’s president defends ongoing strikes in Afghanistan, urges Kabul to dismantle militants
- Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday
- Pakistan’s military says it is only targeting Afghan military installations to avoid civilian casualties
ISLAMABAD: Pakistan’s president on Monday defended his country’s ongoing military strikes in neighboring Afghanistan, saying Islamabad tried all forms of diplomacy before targeting militants operating from Afghan territory, and called on the Taliban government in Kabul to disarm groups responsible for attacks in Pakistan.
Pakistan earlier said it is in “open war” with Afghanistan, alarming the international community. The border area remains a stronghold for militant organizations including Al-Qaeda and the Daesh (Islamic State) group.
“(The Afghan Taliban) must choose to dismantle the terror groups that survive on conflict and its war economy,” Asif Ali Zardari said during a speech to lawmakers, adding that “no state accepts serial attacks on its soil.”
Afghanistan on Thursday launched attacks in retaliation for Pakistani airstrikes the previous Sunday. Since then, Pakistan has carried out operations along the border, with Information Minister Attaullah Tarar claiming the killing of 435 Afghan forces and the capture of 31 Afghan positions.
Kabul has denied such claims.
In Afghanistan, the deputy government spokesman Hamdullah Fitrat said Pakistan’s military fired mortar shells at a refugee camp in eastern Kunar province, killing three children and injuring three others.
Afghanistan’s defense ministry said Afghan forces carried out strikes targeting a Pakistani military facility near Paktia province, causing “substantial losses and heavy casualties.”
Pakistan’s military did not respond to questions. It has said Pakistan is only targeting Afghan military installations to avoid civilian casualties.
Pakistan has witnessed a surge of violence in recent months and blames it on the outlawed Pakistani Taliban, known as Tehreek-e-Taliban Pakistan or TTP. It operates both inside Pakistan and from Afghan territory.
Islamabad accuses Afghanistan’s Taliban government of providing safe havens for the TTP, which Kabul denies.
The latest cross-border fighting ended a ceasefire brokered by Qatar and Turkiye in October. The two sides failed to reach a permanent agreement during talks in Istanbul.
Zardari reiterated Pakistan’s call for talks, saying, “We have never walked away from dialogue.”
The Pakistani leader again accused Afghanistan of acting as a proxy for India by sheltering militant groups.
“Stop being used by another country as a battlefield for their ambitions,” he said.
Zardari cited a recent report from the United Nations Security Council’s monitoring team that described the presence of militant groups in Afghanistan as an extra-regional threat.
