A media mogul and a UAE based businessman walk into a bank. What do they do? They buy it. That is at least what is happening between Salman Iqbal, Nasser Abdullah Hussain Lootah, and Summit Bank.
As per a notice sent to the Pakistan Stock Exchange Salman Iqbal, the owner of the ARY Group, has agreed to subscribe to 25% shares of Summit Bank through a consortium led by Nasser Abdulla Hussain Lootah, a businessman from United Arab Emirates who plans to buy 51% of the bank.
Iqbal’s entry onto the scene has been seen as a surprise by many. The Central Bank had formally approved the Lootah transaction a while ago, and Summit Bank was simply waiting for the tender offer. They have it now that Iqbal has declared his intention to subscribe to 25% of the shares.
Iqbal plans on buying 25% shares at the price of Rs 2.51 per share. The acquisition will be done by purchasing existing shares at Rs 2.51 and subscribing to new shares as well. This will give him the bank’s majority stake and management control.