Noor Financial to divest 5.96% stake in Meezan Bank

LAHORE: Noor Financial is in the initial stage of talks with foreign institutional buyers to divest 5.96% of its shareholding in Meezan Bank.

In a notification sent to the Pakistan Stock Exchange (PSX) on Thursday, Meezan Bank said, “Noor Financial Investment Company (currently owning 462,182,362 ordinary shares in Meezan (representing approximately 39.53% of the issued and paid-up capital of Meezan) is in preliminary non-binding discussions with foreign institutional investors for a proposed divestment of 69,700,000 ordinary shares in Meezan, constituting a total of 5.96% of the total issued and paid-up capital of Meezan on such terms and conditions as may be mutually agreed between the parties.”

Noor Financial has requested Meezan Bank to approach the central bank for the unblocking of the sale shares to enable it to consummate the aforementioned transaction.

In August, according to a notice filed on the exchange, Meezan Bank Limited announced that Noor Financial Investment divested 0.85% of its shareholding.

Earlier on, Noor Financial had divested 2.49%, 0.28% and 3.4% stake in Meezan Bank in May and June 2018 respectively.

In May, Noor Financial said a foreign financial firm had expressed interest in buying part of its stake in Pakistan’s leading Islamic lender Meezan Bank.

In 2017, Noor had stated it was continuously looking for strategic alternatives for its investment in Meezan.

Meezan is Pakistan’s biggest Islamic bank with a retail banking network of more than 600 branches in more than 150 cities of the country.

Noor Financial Investment Company – KPSC engages in the investment and financial activities in Kuwait, the Middle East, Asia, and internationally.

It operates through four segments, namely, investments, real estate, IT services, and hotel operations.

Meezan Bank shares closed trading at Rs89.72, down Rs0.45 (-0.50%). KSE-100 index ended trading at 38,011.63 points, down 295.81 points (-0.77%) on Thursday.