From all corners of the world - the Middle East, China, Europe, and North America billions and billions of dollars of investment is flooding into Pakistan.
Pakistan’s Saudi Pak in talks on stake sale-sources
Pakistan’s Saudi Pak Bank is in talks with several prospective buyers, including some from the Gulf, for the sale of a majority stake that could fetch more than $100 million, banking sources said on Friday. The bank is majority owned by the Saudi Pak Industrial and Agricultural Investment Co., a joint venture between the governments of Pakistan and Saudi Arabia. Saudi Pak Bank is the latest Pakistani bank to have generated foreign interest, thanks to financial reforms that have laid the platform for rapid growth and rising incomes. A Saudi Pak Bank official, who declined to be identified, confirmed that the main sponsors were in talks with prospective buyers for the sale of its stake. Among the local parties interested are unlisted Arif Habib Rupali Bank, owned by Arif Habib Securities Ltd. , and ex-banker Shaukat Tarin, the chairman of the Karachi Stock Exchange, banking sources said. “Some Middle Eastern firms and a few other local parties are also interested in the bank,” one banking source said. Another banking source familiar with developments said the sponsors had asked interested parties to submit bids next week. “They are interested in selling between 51 percent and 68 percent stake in the bank,” he said. At the current share price, a 68 percent stake would be worth about $100 million, though sources said the sale is likely to fetch more. The bank has a market value of around US$145 million. At the end of March, Saudi Pak Bank had assets of 63.85 billion rupees and deposits of 46.7 billion rupees.
FOREIGN INTEREST
China’s biggest lender, Industrial and Commercial Bank of China , is exploring options to enter the growing Pakistani market, and is already in talks with state-run National Bank of Pakistan . Standard Chartered , whose Standard Chartered Bank Pakistan Ltd. is listed on the Karachi Stock Exchange, became the largest foreign bank in Pakistan after the $487 million purchase of Union Bank last year. Dutch bank ABN Amro is the second biggest foreign bank with 83 branches after the acquisition of Prime Bank this year. Pakistan’s NIB Bank Ltd. , a subsidiary of Singapore state investor Temasek Holdings [TEM.UL], said last month it would buy 70 percent of Pakistan’s PICIC , which controls PICIC Commercial Bank , for $378 million. Last year, Samba Financial Group , Saudi Arabia’s second-largest bank by market capitalisation, took control of 68 percent of Pakistan’s Crescent Commercial Bank Ltd. through the issuance of 600 million new shares valued at $98.75 million. At midday on Friday, Saudi Pak Bank shares were 0.65 percent down at 22.75 rupees in a broader market that was down 1.65 percent.