NIB Bank earns Rs 4.1b thru sale of PICIC AMC
KARACHI: NIB Bank, a Singapore investors and a midtier bank, has earned Rs 4.1 billion from the transaction of its 100 percent owned subsidiary of PCICI Asset Management Company (PICIC AMC) to Habib Bank's Asset Management Company (HBL AMC).
The official notification of the bank issued to Pakistan Stock Exchange (PSE) informed its investors and shareholders that bank has completed a formal transaction of its subsidiary to HBL's subsidiary.
Last month, HBL Asset Management (HBL AMC) signed an agreement to acquire 100% shares of PICIC Asset Management Company (PICIC AMC), a wholly owned subsidiary of NIB Bank. The ceremony was also attended by Nauman K. Dar, President Habib Bank Limited and Atif R. Bokhari, President NIB Bank.
The development was seen to be happening with the arrival of new CEO Atif Bokhari who quit United Bank Ltd to join NIB Bank. It is considered that PICIC Asset Management constitutes significant part of the NIB Bank's earning however its operations cost heavily to the bank which affects its core banking business.
After conducting due diligence last year, HBL Asset Management made a successful bid to acquire PICIC Asset Management for Rs. 4.1 billion. PICIC Asset Ma nagement has assets under management of Rs. 23 billion in 8 mutual funds. The agreement was signed after acquiring necessary regulatory approvals.
Besides HBL, JS Investment Ltd also took interest to explore the opportunity of acquiring NIB Bank's subsidiary PICIC Asset Management Company, which was put on sale apparently by the management.
HBL Asset Management is a 100% owned subsidiary of HBL. With a global presence in over 25 countries spanning across four continents, HBL is the largest private sector and also the largest multinational bank in Pakistan with over 1,600 branches and 1,700 ATMs globally and a customer base exceeding 8 million relationships.