JEDDAH,8 April 2007 — Samba Financial Group has completed official procedures for the purchase of 68 percent of the Crescent Commercial Bank of Pakistan (CresBank), Eissa Al-Eissa, the Saudi bank’s chief executive officer said yesterday.
“Samba has bought 600 million shares of CresBank with a total value of six billion Pakistani rupees ($100 million),” Al-Eissa said in an official statement.
“Both banks have completed all legal procedures and received necessary approvals,” he added.
CresBank’s board of directors has been reconstituted accordingly.
Al-Essa first disclosed the deal to purchase majority share in the Pakistani bank in November last year. The move comes as part of the group’s efforts to expand its activities and enter into successful investment ventures on the basis of a long-term strategy.
“The purchase procedures were completed in a record time,” said Al-Eissa, attributing it to Samba’s long-term experience and the support it received from Pakistani authorities, who have welcomed the deal.
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 including Islamabad, Karachi and Lahore. It has a share capital of Rs.2.77 billion by 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.
Al-Essa said Samba started its move to buy stakes in foreign banks several years ago with the purchase of five percent stake in an Indian bank. The group is also planning to expand its activities in the Middle East either by purchasing shares of other banks or establishing its branches in different countries of the region. Samba will soon launch its branch in Dubai.
