Standard Chartered to be listed on bourses

Badar Kazmi, Chief Executive Officer of Standard Chartered Bank (Pakistan) Limited, said on Monday that three bourses of the country have cleared listing application of the new banking entity and consent of Securities and Exchange Commission of Pakistan (SECP) will be obtained in coming weeks.

Addressing a press conference after unveiling re-branded branch at Khayaban-Hafiz, he said that after the listing, the present shareholding pattern will continue. He said the bank is in the process of preparing new liability products, which will offer new investment opportunities to deposit holders besides meeting the instructions of the central bank to the banks to offer such products having more rates of profit.

Union Bank approves share swap ratio

The board of directors of Union Bank Limited has approved swap ratio of shares in the wake of amalgamation of the bank with Standard Chartered Bank.

The Union Bank has informed the regulators “the board of directors of Union Bank Limited in their meeting held on September 22, 2006 approved the draft scheme (of amalgamation).”

“In terms of the draft scheme, shares of Union Bank will be swapped in the ratio of 2.5:1 that is 2.5 shares of face value of Rs10 each in Standard Chartered Bank (Pakistan) will be issued for each one share of Union Bank having face value of Rs10.”

Foreigners hover near fast-growth local banks

Foreign banks are beating a path to Pakistan’s financial sector, attracted by reforms that have laid the platform for rapid growth and rising incomes.

Asia-focused Standard Chartered earlier this month completed the $487 million purchase of a 95.37 per cent stake in Union Bank Ltd – the biggest buy yet by a foreign bank in Pakistan.

Singapore’s Temasek Holdings, Dutch ABN Amro and HSBC are among other foreigners eyeing possibilities in Pakistan, according to bankers here.

Khawaja Iqbal Hassan, President and Chief Executive of NIB Bank (NDLC-IFIC Bank) – majority owned by Temasek – confirmed his intention to acquire a bank, but did not give specific details.

Standard Chartered acquires Union Bank

Standard Chartered PLC announced on Tuesday that its subsidiary company, Standard Chartered Bank (Pakistan) Limited, has completed the acquisition of 95.37 per cent interest in Union Bank Ltd.

The bank said it had paid an amount of $487 million for the purchase of Union Bank.

Pursuant to the acquisition, Standard Chartered Bank will submit a scheme of amalgamation to the State Bank of Pakistan. On approval, Union Bank and Standard Chartered Bank would amalgamate into Standard Chartered Bank (Pakistan) Ltd, said a press release issued by the bank.

ABN AMRO to acquire PICIC Group

Pakistan Industrial Credit and Investment Corporation (PICIC) is preparing for a complete sell-out and ABN Amro has shown interest in the group.

The current wave of foreign investments in the financial sector of Pakistan could take a new turn if the PICIC like institutions are sold to an international bank.

“We have information that ABN Amro has shown interest and initiated a dialogue with the PICIC officials,” said a highly-placed banking source.

However, no official confirmation was available from both the entities involved in the initial talks for a possible deal.