Bank Alfalah Limited (BAFL) has received approval from the State Bank of Pakistan (SBP) to begin due diligence on Samba Bank Limited. This approval, disclosed by BAFL in a filing to the main bourse on Monday, marks a significant step in BAFL’s potential acquisition of Samba Bank.
The filing stated, “We are pleased to inform you that the State Bank of Pakistan has granted its approval to BAFL to commence due diligence of the Target Company.”
BAFL had publicly expressed its interest in acquiring 84.51 percent of Samba Bank Limited’s shares, currently held by Saudi National Bank. This interest was initially announced by BAFL on April 9, 2024.
The process began in March 2024, when BAFL submitted a Non-Binding Indicative Offer to Saudi National Bank to acquire Samba Bank Limited.
As of the latest update, BAFL’s stock price at the Pakistan Stock Exchange (PSX) stood at Rs. 61.97, experiencing a decrease of Rs. 0.46 or 0.74 percent. In contrast, Samba Bank Limited’s stock price was Rs. 11.25, reflecting an increase of Rs. 0.85 or 8.17 percent.
This development highlights BAFL’s strategic moves within the banking sector and signals potential advancements in the financial landscape, pending the outcome of the due diligence process and subsequent negotiations.