Muslim Commercial Bank (MCB), a Pakistan-based bank, has signed agreements, whereby it will acquire 99.37% of the ordinary share capital in Royal Bank of Scotland (hereafter ‘RBS Pakistan’) from its major shareholder and sponsor ABN Amro Bank.
Reportedly, MCB will initially acquire 1,707,107,891 ordinary shares in RBS Pakistan, representing a 99.37% stake, for a cash price of PKR4.22 per share. The bank has said that the total consideration to be paid will be PKR7,200 million (approximately $87 million). Moreover, MCB will fund the transaction entirely through internally generated cash resources.
As a result of the transaction, based on proforma numbers, the total number of branches of combined MCB and acquired bank will increase to 1,139, the total consolidated deposits will increase to PKR413 billion and consolidated gross advances to PKR324 billion. However, the proposed acquisition is conditional upon necessary Regulatory and other approvals.
Mian Muhammad Mansha, chairman of MCB, said: “This is an important transaction for us as it strengthens our franchise in the key urban centers and broadens our product offering to our retail as well as corporate customers.”
Atif Bajwa, president, MCB, said: “The RBS acquisition will be crucial in providing access to important customers, in making available a strong human resource pool as well as an evolved product development and technology infrastructure.”
Muhammad Aurangzeb, chairman of RBS Pakistan, said, “We are delighted to confirm that we have successfully entered into a sale agreement with MCB for RBS Pakistan which comprises of retail, commercial, Islamic and onshore GBM and GTS businesses in Pakistan. I am particularly pleased that our staff and customers will become part of one of the leading banks in Pakistan with a long standing banking history of over sixty years.”
