Orix Leasing Pakistan Limited (OLPL) plans to tap the high growth Islamic finance market.
The company has chosen an innovative way to attain its objective. It has entered into a non-binding Memorandum of Understanding (MoU) with Standard Chartered Bank (Pakistan) Limited (SCBPL) with regard to a prospective merger/amalgamation of Standard Chartered Leasing Limited (SCLL), a subsidiary of SCBPL with and into OLPL or acquisition of SCBPL’s 86.45 per cent equity stake in SCLL.
The MoU further provides the acquisition of SCBPL’s 100pc stake in Standard Chartered Services of Pakistan (Private) Limited and acquisition of SCBPL’s 20pc stake in Standard Chartered Modaraba.
The Orix company Secretary Effat Assad went on to state: “This stake is held 10pc directly and 10pc indirectly through SCSPL”.
“The transaction structure and implementation plan would be subject to: due diligence of SCLL, SCSPL and SCM by OLPL which would commence shortly,” the company secretary informed and added that the MoU would result in binding transaction also after all necessary regulatory clearance for the approved structure; execution of definitive transaction agreements and satisfaction of various conditions, including regulatory and corporate approvals contained in the definitive transaction agreements.
