Faysal Bank Limited’s (FBL) sponsor shareholder Ithmaar Holding and GFH Financial Group have terminated discussions regarding the potential acquisition of Ithmaar’s financing and investment portfolio.
FBL announced the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“We wish to inform you that following detailed discussions, Ithmaar Holding B.S.C. (“Ithmaar”), the sponsor shareholder of Faysal Bank Limited and GFH Financial Group B.S.C. have mutually agreed to terminate the discussions regarding the potential acquisition of Ithmaar’s financing and investment portfolio,” the notice read.
“There are no other material aspects related to this matter that require disclosure at this time. The Board of Directors has authorised the undersigned to issue this disclosure,” it added.
GFH is financial group in the Gulf Cooperation Council (GCC) region. Headquartered in Bahrain, it is listed on four stock exchanges in the GCC, including the Bahrain Bourse, Boursa Kuwait, Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX), as per the information given on its website.
In May 2024, FBL announced that Ithmaar Holding had held extraordinary general meetings (EOGM) to get approval of its shareholders for proposed sale and transfer of certain assets.
The company had managed to get its shareholders’ approval for the proposed sale and transfer of certain assets, approximately $695-715 million and liabilities, $665-695 million.
One of the agenda items of the EOGM was the proposed sale and/or transfer of 75% of Ithmaar’s current stake in FBL (translating into around 50% of the total outstanding shares of FBL, thereby the controlling interest) to GFH/ any of its subsidiaries or nominee companies.
The proposed transaction was subject to all necessary regulatory approvals and also full compliance with all legal requirements in Pakistan as well as in the Kingdom of Bahrain / other relevant geographies.
