Askari Bank Limited has dropped the idea of acquiring Mybank Limited.
AKBL has informed the Karachi Stock Exchange on Friday saying that the bank is no longer interested in the amalgamation scheme of Mybank with Askari Bank.
It is important to mention here that AKBL had applied to the State Bank of Pakistan last month for conducting the due diligence of Mybank with an aim of evaluating Mybank’s balance sheet, at the same time analysing its loss/profit, asset and liabilities and deposits position and looked for suitable proposed transaction.
During the proposed period of due diligence, the interested banks are allowed to go for auditing of the balance sheets of the bank/institution that is put on sale.
Sources said both concerned parties had submitted their due diligence report to SBP but they failed to make any consensus on the swap ratio accepted for this deal taking into account the book values, fair values and industry historical benchmarks.
In June 2009 Askari Bank Limited had shown its intention to merge Mybank and Askari Leasing.
It must be recalled that the acquisition deal of Mybank was supposed to be done with Hussian Lawai consortium.
In April 2009, the management of Mybank had resumed talks with the sponsored party to get into the process of due diligence. The acquisition deal of Mybank by the Lawai-led consortium was planned to be completed in February 2008 but a deadlock had emerged between the concerned parties over the acquisition pricing formula.
Mybank Limited was incorporated in 1992 as a Commercial bank.
The break-up of financial accounts of Mybank for the period ended on December 31, 2008 revealed that the paid up capital of the Bank was Rs 4.243 billion and equity was Rs 5.58 billion.
Total assets of the Bank amounted to Rs 39.083 billion during 2008. The Bank has 80 branches across the country. Mybank reported profit after tax of Rs 0.35 billion with equity per share of 0.78 rupees in CY08.
AKBL has informed the Karachi Stock Exchange on Friday saying that the bank is no longer interested in the amalgamation scheme of Mybank with Askari Bank.
It is important to mention here that AKBL had applied to the State Bank of Pakistan last month for conducting the due diligence of Mybank with an aim of evaluating Mybank’s balance sheet, at the same time analysing its loss/profit, asset and liabilities and deposits position and looked for suitable proposed transaction.
During the proposed period of due diligence, the interested banks are allowed to go for auditing of the balance sheets of the bank/institution that is put on sale.
Sources said both concerned parties had submitted their due diligence report to SBP but they failed to make any consensus on the swap ratio accepted for this deal taking into account the book values, fair values and industry historical benchmarks.
In June 2009 Askari Bank Limited had shown its intention to merge Mybank and Askari Leasing.
It must be recalled that the acquisition deal of Mybank was supposed to be done with Hussian Lawai consortium.
In April 2009, the management of Mybank had resumed talks with the sponsored party to get into the process of due diligence. The acquisition deal of Mybank by the Lawai-led consortium was planned to be completed in February 2008 but a deadlock had emerged between the concerned parties over the acquisition pricing formula.
Mybank Limited was incorporated in 1992 as a Commercial bank.
The break-up of financial accounts of Mybank for the period ended on December 31, 2008 revealed that the paid up capital of the Bank was Rs 4.243 billion and equity was Rs 5.58 billion.
Total assets of the Bank amounted to Rs 39.083 billion during 2008. The Bank has 80 branches across the country. Mybank reported profit after tax of Rs 0.35 billion with equity per share of 0.78 rupees in CY08.
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