The State Bank of Pakistan (SBP) has allowed Jahangir Siddiqui and Co. Limited (PSX: JSCL) to sell and transfer 235,684,306 shares of BankIslami Pakistan Limited (PSX: BIPL) to its subsidiary JS Bank Limited (PSX: JSBL), read a stock filing on Monday.

SBP has further allowed JSCL “to subscribe to additional shares of JSBL which are being issued by way of rights to all shareholders of JSBL and which would remain unsubscribed by the public shareholders of JSBL”.

It is pertinent to mention here that JS Bank on March 6 announced its decision to acquire shares in BankIslami through a shares swap agreement with JS Global Limited and JS Investments Limited. However, later on, the bank announced the offering of cash consideration to the minority shareholders of BIPL.

BankIslami Pakistan Limited is a prominent Islamic bank in Pakistan that has been serving customers for many years. The potential takeover of the bank by JS Group has piqued the interest and speculation of the business community and investors. In this case, interested parties filed applications against the transaction and sought an injunction from Sindh High Court (SHC) to prevent the bank from proceeding with the acquisition.

In June, SHC dismissed all applications against JSBL’s acquisition of BIPL shares, and the Bank has now proceeded with the purchase on schedule.

Source: ProPakistani