Faysal Bank Limited’s (PSX: FABL) parent company, Ithmaar Holding, secured shareholder approval at its EOGM on Wednesday for the sale of a significant stake to Bahrain’s GFH Financial Group.
The move involves the transfer of assets worth US$695-715 million and liabilities of US$665-695 million. Initially, a 66.67% stake in Faysal Bank will be transferred to a newly formed Ithmaar Holding entity (Faysal Bank JV). Following regulatory approval, GFH will acquire 75% of Faysal Bank JV’s issued capital.
This strategic transfer aims to streamline the transaction without affecting Pakistan’s foreign currency exchange. Ithmaar will effectively sell Faysal Bank shares indirectly through Faysal Bank JV.
The agreement includes a guaranteed annual return of 12% ROE for GFH over five years. How this will impact Faysal Bank’s future dividend payouts remains unclear.
This follows Ithmaar’s recent sale of a 5.76% stake in Faisal Islamic Bank of Egypt for US$34.8 million, valuing the bank at US$604 million.
At the time of this report, FABL shares were trading at Rs. 42.05, down 3.44% or Rs. 1.5, with a trading volume of 1.9 million shares on Thursday.
Furthermore, discussions are underway regarding GFH’s potential acquisition of Ithmaar’s Financing and Investment Portfolios, hinting at a broader collaboration.