KARACHI: Nasser Abdullah Hussain Lootah, a Dubai-based businessman, acquired the majority shareholding and management control of Summit Bank Limited, one of Pakistan’s most prominent commercial banks, with a vision to transform it into a “full-fledged Islamic bank,” the company said on Wednesday.
Summit Bank is a subsidiary of Suroor Investments Limited (SIL) which is incorporated in Mauritius. As of December 31, 2022, SIL held 66.77 percent of the issued, subscribed and paid-up share capital of the Bank.
Lootah, who is also chairman of Summit Bank and was holding 0.51 percent stakes prior to the transaction, now holds 51 percent stakes with the bank’s management control. The move was recently approved by the State Bank of Pakistan, Securities and Exchange Commission of Pakistan, and Competition Commission of Pakistan.
“To demonstrate his unwavering commitment to the Bank’s success and positive vision for Pakistan (despite the current economic situation), the Investor subscribed to Rs3.98 billion new shares of the Bank at Rs2.51 per share, giving him a majority equity stake,” the bank said in a statement on Wednesday. “In this regard Rs10 billion has already been injected into the Bank in January 2023 through an advance payment for the proposed share issuance.”
In a stock filing on Wednesday, Summit Bank said “the acquirer has become the majority shareholder of the bank.”
On its website, Summit Bank says it has decided to convert itself into a “full fledge Islamic Bank” guided by an eminent board of Shariah scholars.
“Following acquisition of the bank, Lootah is ready to convert it into a full-fledged Islamic bank, representing a significant advancement for the Islamization of the banking industry in the country,” Summit Bank said in its statement. He added that the investor wanted the bank to continue providing exceptional services, innovative products, and ensure its commitment to the principles of Islamic finance.
It said the bank’s leadership and staff are “enthusiastic about the future of the Bank” and remain committed to providing ethical and transparent financial services to its clients.
Summit Bank President Jawad Majid Khan emphasized that the bank’s revival involves more than just new equity injection and Islamic banking. In addition to the acquisition, Summit Bank shall undergo a complete overhaul of its operations and digitalization in accordance with modern banking practices, he said.
“This shall also include rebranding of Summit Bank, allowing it for a fresh start and a new identity,” Khan said.
Bank officials expect to leverage Lootah’s relationships to expand and rake in more benefit from the gulf market.
“The Bank’s renewed commitment to its clients and principles will be a fundamental aspect of its success. The Bank will also benefit from the Investor’s relationships in the Middle Eastern banking industry,” the bank said in the statement.
As per its website, Summit Bank has193 branches across Pakistan, of which 43 branches in 23 cities are offering Islamic banking opportunities.
Summit bank’s share price surged on Wednesday from Rs1.94 to Rs2.17 per share as 1.2 million shares changed hands.
