Reports are coming in that the Security and Exchange Commission of Pakistan (SECP) has allowed Bahria Town to buy a stake of 71.6% along with the managerial control of the Escorts Investment Bank.
The decision was made according to the application that was filed in the apex regulatory against the application filed by the management to meet the Fit and Proper Criteria. In addition, the SECP has already given its accord to principle and issued some condition, which are as follows.
- The in-principle approximately will be automatically canceled in case the proposed transaction does not materialize.
- In case the negotiation culminates into a conclusive agreement, Escorts Investment Bank shall seek approval of SECP in terms of the Rule 5(6) of the Non-Banking and Finance Company Rules, 2003. Furthermore, Escort Investment Bank and Bahria Town shall ensure compliance with all other regulatory frameworks including the requirements mentioned in Part IX of the Securities Act, 2015
Moreover, the management of Escorts Investment Bank and Bahria Town are now working to decide the final share price for the deal. For those who are not familiar with the story, Bahria Town, real estate giant owned by Malik Riaz, had filed an application in March 2017 to acquire 71% shares of Escorts Investment Bank. The main aim of the move is to obtain the substantial and voting shares of Escorts Investment Bank.
In any case, we’ll keep a track on the upcoming trends of the real-estate conglomerate, Bahria Town, to keep our readers updated. Follow our social media channels to update yourself with the current and on-goings trends in the business ecosystem of Pakistan.