Summit Bank’s board of directors has decided to sell at least 51 percent of the bank’s controlling interest to a UAE-based investor for Rs2.51 per share, as per a regulatory filing on Monday.
Nasser Abdulla Hussain Lootah, who presently holds 0.51 percent of the bank’s shares, will be able to get access to extraordinary shares as part of a fresh equity injection at the country’s smallest listed bank in terms of total assets.
After the subscription, the purchaser will use a public tender bid to purchase existing shares from minority shareholders, increasing its shareholding to at least 51 percent and assuming managerial control.
The exact magnitude of the transaction cannot be determined at this point of the deal, according to JS Global Head of Research Amreen Soorani.
Summit Bank is worth around Rs7.75 billion on the Pakistan Stock Exchange (PSX). On Monday, its stock rose 13 percent to Rs2.94 a share. It has risen over 22% in the previous week alone.
