Bank Alfalah Withdraws Plans to Acquire Samba Bank as Saudi National Bank Halts Divestment
In a recent development, Bank Alfalah Limited (BAFL), one of Pakistan’s leading commercial banks, has officially withdrawn its public announcement of intention (PAI) to acquire a majority stake in Samba Bank Limited. The decision follows the Saudi National Bank’s (SNB) termination of its plans to divest its approximately 84.51% stake in Samba Pakistan.
BAFL had initially received in-principle approval from the State Bank of Pakistan (SBP) in May, granting the bank permission to conduct due diligence on Samba Bank in connection with the proposed acquisition of SNB’s equity stake. Arif Habib Limited, acting as the Manager to the Offer on behalf of BAFL, confirmed the withdrawal of the PAI in a notice published in Business Recorder and Nawa-i-Waqt on November 14, 2024.
“Saudi National Bank has terminated the process for the sale of its equity stake in Samba Bank Pakistan,” BAFL stated in its notice to the Pakistan Stock Exchange (PSX). BAFL’s public announcement in April had expressed its intent to acquire SNB’s substantial shareholding in Samba Bank Limited, following which due diligence was carried out as approved by the SBP.
In a statement to the stock exchange, Samba Bank echoed SNB’s decision, saying, “We have been notified that after completing due diligence and exploring the sale of its shares, the Saudi National Bank, as the majority shareholder of Samba Bank Pakistan, has decided to terminate the process for selling its stake.”
This recent announcement marks the latest in a series of acquisition attempts involving Samba Bank. Back in 2021, a consortium that included members of Samba Bank’s management, Fatima Fertilizer Company Limited, and Gulf Islamic Investment LLC, expressed firm interest in acquiring control over the 84.51% stake in Samba Bank.
For now, however, with SNB’s decision to retain its stake, any further acquisition of Samba Bank remains on hold.
