JEDDAH, 19 November 2006 — Samba Financial Group will buy 68 percent of the Crescent Commercial Bank of Pakistan (CresBank), announced Samba CEO Eissa Al-Eissa yesterday.
“Samba will take control of 68 percent of CresBank through the issue of 600 million new shares valued at six billion Pakistani rupees ($100 million) ... in the form of a capital increase,” said Al-Eissa.
Samba has to get permission of both Saudi and Pakistani authorities to finalize the deal that has been approved by the CresBank’s board of directors, said the Capital Market Authority’s website quoting Al-Eissa. The Pakistani bank’s board of directors will be reshuffled after the completion of takeover procedures, he added.
A number of Pakistani, Gulf and other foreign banks were vying for the CresBank takeover. Established in 1992, Crescent has 18 branches in five main cities of Pakistan. It had a share capital of Rs.2.77 billion at the end of September.
Samba is the second largest bank in the Middle East with market capitalization of $22 billion. The Samba chief attributed his bank’s decision to take over CresBank to the encouraging investment climate in Pakistan and the country’s good economic performance.