NIB Bank earns Rs 4.1b thru sale of PICIC AMC

The Pak Banker - - FRONT PAGE -

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.

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