SBP re­jects Je­hangir Sid­diqui & Co for buy­ing Dubai Bank's shares in BankIslami

The Pak Banker - - FRONT PAGE - Muham­mad Yasir

State Bank of Pak­istan (SBP) has re­jected re­quest of Je­hangir Sid­diqui & Com­pany Lim­ited (JSCL) to re­view its de­ci­sion to dis­al­low Dubai Bank to sell out its shares to its spon­sor share­hold­ers. Ac­cord­ing to stock fil­ing, the JSCL man­age­ment said it ap­proached the cen­tral bank in Septem­ber to sub­mit an ap­pli­ca­tion to the cen­tral bank with sug­ges­tions in or­der to get­ting ad­di­tional shares in BankIslami.

But the cen­tral bank re­tained its de­ci­sion and dis­al­lowed the man­age­ment of BankIslami to sell its stakes of Dubai Bank to Je­hangir Sid­diqui Com­pany in pur­suant to Found­ing Share­hold­ing Agree­ment un­der which spon­sor share­hold­ers are not al­lowed to in­crease its share­hold­ing.

SBP no­ti­fied ear­lier Dubai Bank on the di­rectly JSCL ap­proached the bank that it can't sell any shares in BankIslami to any its ex­ist­ing spon­sor share­holder. Hence, the Dubai Bank showed its in­abil­ity to sell its stakes to JSIL and other spon­sor share­hold­ers.

Ear­lier, a Con­sor­tium led by Ali Hus­sain of Je­hanghir Sid­diqui Com­pany Ltd and Alka­ram Group has of­fered Dubai Bank to pur­chase its 144.200 mil­lion in the BankIslami.

There were nine in­di­vid­u­als who were dis­closed to show their in­ter­est in the pur­chase of shares in AlKa­ram Group in­clud­ing Anis Yakoob, No­man Yakoob, Abid Umer, Afzal Umer, Sa­jid Ha­roon, Shafiq Sa­jid, Sa­lik Shahid, Shahida Yakoob and Alka­ram Fi­nan­cial Lim­ited. BankIslami man­age­ment de­cided to give first right of re­fusal to Je­hangir Sid­diqui Com­pany Ltd and Ran­deree fam­ily to pur­chase the re­spec­tive por­tion of share un­der the found­ing share­hold­ers agree­ment be­tween the share­hold­ers of BankIslami.

Mean­while, the man­age­ment of BankIslami re­vealed names of its nine stake­hold­ers hav­ing 12.8 per­cent or 129 mil­lion shares in over­all share­hold­ing of the bank on the di­rec­tion of Se­cu­rity and Ex­change Com­mis­sion of Pak­istan (SECP). The man­age­ment had given a de­tail ac­count of the share­hold­ers names in­clud­ing Abid Umer, Anis Yaqoob, Afzal Umer, No­man Yaqoob, Ha­roon, Sa­lik Sa­jid, Shafiq Shahida and Amni In­dus­tries.

The share­hold­ing of th­ese stake­hold­ers varies from 0.7 per­cent to 1.86 per­cent but seven out of nine share­hold­ers were the same who be­fore part of the con­sor­tium of Ali Hus­sain of JSCL.

The man­age­ment of BankIslami has been wit­ness­ing a dif­fi­cult times as it has to con­vert as­sets and op­er­a­tions of KASB Bank into Sharia com­pli­ant whereas it has been fac­ing al­le­ga­tions and sus­pi­cions from dif­fer­ent au­thor­i­ties and me­dia.

Be­sides, the bank's share­hold­ing trans­ac­tion from one in­vestors group to an­other have not suc­ceeded de­spite of avail­abil­ity of op­tion as cen­tral bank raised con­cerns and ob­jec­tions. Sa­jid Sa­jid,

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