The Arif Habib Corporation has acquired 28.23% shareholding in Silkbank, as per stock exchange reports earlier yesterday.
The conglomerate with interests in brokerage, fertiliser, cement, steel and real estate sectors has received the regulator’s approval for the acquisition of a stake in one of the smaller banks operating in Pakistan. In addition to Arif Habib Corporation, Zulqarnain Chattha and Zubair Nawaz Chattha of the Gourmet Group have also acquired a 12% stake, thus becoming ‘sponsor shareholders’ of Silkbank.
“The bank shall now proceed to issue the shares and complete the rights issue in all aspects shortly,” stated a separate statement released by Silkbank.
Silkbank had previously entered into an underwriting arrangement with the Arif Habib Group as part of its capital-raising initiative through a Rs 10 billion rights issue.
Silkbank’s rights issue was in response to regulatory compliance requirements stemming from capital adequacy concerns.
It issued over 6.4 billion right shares at Rs 1.56 per share, reflecting a discount of Rs 8.44 per share. In most right share issues, cash-starved companies grant existing shareholders the right to purchase newly issued shares at a discount to the prevailing market price.
Often referred to as seasoned equity offerings, right share issues allow cash-strapped companies to raise capital rather than borrow from external sources.
At the end of last year, the International Finance Corporation held 26.3% of Silkbank, while Shaukat Tarin, Nomura European Investment, and Bank Muscat held 22.5%, 13.3%, and 11.8%, respectively.
A Silkbank spokesman did not respond to the question about the shareholding pattern following the conclusion of the rights issue. Silkbank posted a net loss of Rs 65.5 million in the first nine months of 2015, compared with a profit of Rs 101.2 million in January-September 2014.
