RMS withdraws bid to acquire 87.96% stake in Escorts Investment Bank

Deadline to make public announcement lapsed on may 12, 2024, without necessary approvals

RMS (Private) Limited has formally announced the withdrawal of its bid to acquire 87.96% of Escorts Investment Bank Limited. Arif Habib Limited, the manager of the offer, on behalf of RMS (Private) Limited, informed about this development to the Pakistan Stock Exchange (PSX) on Monday. The initial public announcement, made by RMS (Private) Limited on August 16, 2023, aimed to acquire up to 119,279,077 ordinary shares, was published in newspapers. The transaction was contingent on receiving various regulatory and other approvals. However, as the deadline lapsed on May 12, 2024, without all necessary approvals being secured, the offer has now been officially withdrawn. “We, Arif Habib Limited, in our capacity as Manager to the Offer, would like to intimate that the time period for making the public announcement of offer (as extended by the Acquirer) lapsed on May 12, 2024 as certain regulatory and other approvals for the Transaction remain outstanding,” read the notice. According to the regulations of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, coupled with the Securities Act 2015, the firm has opted to retract their proposal.this move comes as a compliance measure to ensure all legal frameworks are adhered to regarding substantial acquisitions.