Samba Acquires 68% of Crescent Commercial Bank, Pakistan for $US 100 Million
Mr. Eisa M. Al-Eisa Samba Managing Director and CEO today announced that Samba intends to acquire 68% of Pakistani bank Crescent Commercial Bank Ltd. (CCBL). The transaction will see CCBL issuing an additional 600 million new shares to Samba to the value of PKR 6 billion ($US 100 million) at a par value of PKR 10 per share. The acquisition is subject to regulatory approvals in Saudi Arabia and Pakistan, the implementation of Samba bid terms and conditions and finalization if of the relevant legal formalities.
Following the completion of the acquisition, CCBL's Board will be change to reflect Samba's 68% ownership and in accordance with the requirements of the Pakistani and Saudi regulatory authorities.
The bid was approved by the Board of Directors of Crescent Commercial Bank Ltd after competition with a number of leading international, Pakistani and GCC banks.
CCBL was established in 1992 under a highly qualified and experienced management team with a diversified shareholder base. The Bank has 18 full service branches in 5 key cities including Islamabad, Karachi and Lahore
Al-Eisa emphasized that Samba's decision to invest in Pakistan clearly reflects the strong economic performance of the country and the stable and investor friendly policies being pursued by the Government of Pakistan, which created a conducive environment for investment in the banking sector and continues to offer attractive returns to investors and consequently to Samba and its investors.
Samba is the second largest bank in the Middle East with a market capitalization of US$ 22 billion and shareholder's equity of US$ 3.9 billion. It enjoys the highest credit ratings by S&P, Fitch, and by Capital Intelligence. Furthermore, Samba has been granted several international accolades from international prominent bodies specialized in financial industry including the award of "Best Middle East Bank in 2006" by Emerging Markets.
According to this deal, CCBL will take on the Samba brand and plans to focus on the customer, corporate, treasury and investment banking market segments. The existing branch network will be expanded substantially to cover all major customer concentrations.