KARACHI: The State Bank of Pakistan (SBP) has granted approval to Saudi National Bank (SNB) to undertake due diligence of Samba Bank Limited, according to information received on Tuesday.
Samba Bank Limited shared a communication with the Pakistan Stock Exchange (PSX) that the SBP had granted approval to SNB and its advisor, due diligence team, to undertake the due diligence of Samba Bank Limited with applicable laws, rules and regulations.
Samba Bank previously on September 21, 2021 communicated to the PSX that SNB, as the immediate parent company of Samba Bank Limited had notified: “SNB is considering all its strategic options in relations to its shareholding in Samba Pakistan Limited, including potential mergers, acquisitions, divestment and/or restructuring (the strategic review).
“Any decision relating to the strategic review shall be subject to internal approvals and may be subject to regulatory approvals as well as execution of the definitive agreement.”
It may be mentioned that SNB is the successor entity of Samba Financial Group, pursuant to a merger process in the Kingdom of Saudi Arabia, and regulatory formalities for the formal recording of Saudi National Bank as the successor entity in Pakistan is under process.
Samba Bank through a letter on October 05, 2021 made further disclosure to the stock exchange that the board of directors of SNB had approved the following actions in respect of Samba Bank Limited:
— To commence and orderly well managed divestment of Samba Bank Limited – Pakistan.
— To appoint an advisor to assist with the process, which has been done by SNB;
— to advise Samba Bank Limited on engagement with the regulators in Pakistan for the process, as necessary;
— To revert to the Board of Directors of SNB, before commencing a process of due diligence based on the receipt of Non-Binding offers and feedback from the market in the evaluation of this option.
