KARACHI, April 17, 2025 – Faysal Bank Limited (PSX: FABL) has formally announced that its sponsor shareholder, Ithmaar Holding B.S.C., and Bahrain-based GFH Financial Group B.S.C. have decided to terminate discussions regarding a proposed acquisition of Ithmaar’s financing and investment portfolio. The development was disclosed in an official notification to the Pakistan Stock Exchange (PSX) on Wednesday.
The termination of the talks comes after several months of negotiations between the two entities. According to the disclosure, both parties arrived at the decision following comprehensive deliberations on the potential transaction. This update follows a prior disclosure dated May 30, 2024, which had revealed the initial stages of acquisition discussions.
The statement issued by Faysal Bank clarified that there are no additional material elements at this point that warrant further disclosure. “The company’s Board of Directors has authorized the undersigned to issue this announcement,” the notice read, signaling a formal and conclusive end to the engagement between the two financial entities.
GFH Financial Group, a prominent financial investment group headquartered in Bahrain, has a presence across major financial markets in the Gulf region. It is listed on four exchanges including the Bahrain Bourse, Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX), and Boursa Kuwait. The group had been in talks to acquire a significant portion of Ithmaar’s investment assets, which included its controlling stake in Faysal Bank.
The proposed acquisition had the potential to significantly alter the shareholder structure of Faysal Bank. As per earlier announcements, Ithmaar was evaluating the transfer or sale of a large portion of its assets and liabilities, totaling approximately $695–715 million in assets and $665–695 million in liabilities. The sale also included a potential transfer of around 75% of Ithmaar’s stake in Faysal Bank, which would have amounted to nearly 50% of the total outstanding shares — a controlling interest.
While specific reasons for the decision to terminate the discussions were not detailed in the latest filing, industry analysts believe that regulatory complexities, valuation disagreements, or shifting strategic priorities may have contributed to the outcome. The deal was contingent on numerous regulatory and legal approvals across both Pakistan and Bahrain, and involved multiple jurisdictions — a factor that often complicates high-value cross-border transactions.
In financial markets, the news brings a moment of clarity for Faysal Bank stakeholders who had been closely monitoring the developments, particularly those concerned about potential changes in governance or operational strategy under new ownership.
Although the transaction will no longer proceed, the interest shown by GFH Financial Group reflects the growing regional appetite for stakes in Pakistan’s banking sector, especially in institutions with a solid retail presence and Shariah-compliant financial services portfolios.
Faysal Bank remains one of Pakistan’s key players in the Islamic banking space and continues to maintain a strong retail footprint. With this chapter closed, the bank appears focused on its ongoing operational goals, customer service initiatives, and digital transformation strategy.
Going forward, both Ithmaar and Faysal Bank have left the door open for future possibilities, but for now, this proposed acquisition has officially been taken off the table.