Jahangir Siddiqui Company Limited to get JS Bank shares

Karachi: The Jahangir Siddiqui Company Limited (JSCL) has decided to sell its entire stake in JS Global Capital to JS Bank Limited in a share exchange deal, it said in a notice on Thursday.

The Board of JSCL has approved the exchange of 43.47 percent shareholding in JS Global Capital against the shares of JS Bank, which would increase JSCL’s shareholding in the bank by six percent to 70 percent.

As per the swap ratio, JSCL would get 7.26 shares of JS Bank against every one share in JS Global Capital. JSCL’s shareholding in JSGCL comprises 21.73 million shares.

The swap ratio for the issue of new shares of JSBL to JSCL in exchange for shares of JSGCL has been determined by Yousuf Adil Saleem and Company based on break-up values of Rs51.863 for JSGCL and Rs7.143 for JSBL. JS Bank has struggled to meet minimum capital requirement (MCR), which is Rs8 billion by 2011-end. Its share capital stands at Rs5.8 billion.

The central bank has reduced the minimum capital requirement for some banks in recent years as slowdown in economy discouraged investors.

Leave a Reply