The Board of Directors of JS Bank Limited (JSBL) in its meeting held on Wednesday resolved to pursue a public offer for a minimum 24.88 percent ordinary shares of BankIslami Pakistan Limited (BIPL), subject to a special majority resolution by the Bank’s members.
In a notice issued to the Pakistan Stock Exchange (PSX) on Wednesday, the bank said that the offer will be in cash.
The Board also revolved to offer and issue to the existing shareholders of the bank 220,568,925 Ordinary Shares by way of rights at Rs. 10 each (i.e. at par value), for the aggregate subscription amount of Rs. 2.205 billion in proportion to their respective shareholdings in the ration of 17 Right Shares for every 100 Ordinary Shares (i.e. 17 percent rights issue) held by the shareholders.
The notice said that the proceeds from the intended right issue will be used primarily for making consideration payment to such public shareholders of BIPL who would tender their shares to JSBL during the intended public offer.
Back in February, Jahangir Siddiqui and Co. Ltd announced that its Board has provide its consent and approval to sell the entire investment and shareholding of the company in the shares of BankIslami Pakistani Limited, i.e. 235,684,306 ordinary shares representing 21.26 percent of the issued and paid-up capital of BIPL to its subsidiary JSBL, in exchange of consideration of 266,747,498 ordinary shares of the face value of Rs. 10 per share each of JSBL to be issued to the company as new other than rights and other than cash issue based on the valuation carried out by an approved and independent evaluator.
Late on March 3, JSBL announced that it intends to acquire 42.45 percent ordinary voting shares and control of BIPL from existing sponsors and shareholders of BIPL through an agreement and a public offer for a minimum 24.88 percent ordinary shares of BIPL to be made to all public shareholders of BIPL.
JSBL said that 470,603,772 shares of BIPL will be acquired against the issuance of 532,629,349 new shares of JSBL to be issued by way of other than rights and other than cash.
It also said that public offer will be made for a minimum of 24.88 percent ordinary shares of BIPL to all public shareholders of BIPL in exchange for a maximum of 59.56 percent shares of JS investments Limited (JSIL) and a maximum of 67.90 percent ordinary shares of JS Global Capital Limited (JS Global) currently held by JSBL.
Source: Pro Pakistani