Faysal Bank has acquired 99.37% stake in Royal Bank of Scotland (RBS) Group’s Pakistan unit for EUR41m. The transaction is subject to regulatory approvals.
This acquisition will add 79 branches to Faysal Bank’s network of 133 outlets. The combined entity is expected to have an asset base of over PKR250bn.
This was RBS’s second attempt to sell a stake in its local unit after MCB Bank aborted a proposed takeover following a dispute over depositing shares as security. In August 2009, MCB agreed to acquire 99.4% of RBS Pakistan for about $87m.
The sale of stake in RBS Pakistan is part of a wider divestment of assets by RBS, which is majority-owned by the British government.
Naved Khan, CEO of Faysal Bank, said: “The acquisition will significantly contribute to Faysal Bank’s development and will be a major catalyst in achieving our growth strategy. Whilst expanding our geographical footprint touch points, customer base and product portfolio, this acquisition will boost our ability to raise the bar of our service levels. Further employees of the combined entity could have potentially greater career opportunities and development options.”