Bank Alfalah Limited (BAFL), a leading commercial bank in Pakistan, has decided to withdraw its public announcement of intention (PAI) to acquire a majority stake in Samba Bank Limited. This decision comes after the Saudi National Bank (SNB) announced it would no longer pursue the divestment of its approximately 84.51% stake in Samba Pakistan.
Earlier this year, the State Bank of Pakistan (SBP) had granted BAFL in-principle approval in May, allowing the bank to proceed with due diligence on Samba Bank as part of the proposed acquisition of SNB’s equity. Arif Habib Limited, acting as the Manager to the Offer for BAFL, confirmed the PAI withdrawal in a notice published in Business Recorder and Nawa-i-Waqt on November 14, 2024.
In its notice to the Pakistan Stock Exchange (PSX), BAFL stated, “Saudi National Bank has terminated the process for the sale of its equity stake in Samba Bank Pakistan.” BAFL initially made its public announcement in April, expressing interest in acquiring SNB’s substantial shareholding in Samba Bank Limited. After SBP’s approval, BAFL conducted due diligence.
Samba Bank echoed SNB’s decision, noting that “after completing due diligence and exploring the sale of its shares, the Saudi National Bank, as the majority shareholder of Samba Bank Pakistan, has decided to terminate the process for selling its stake.”
This recent decision follows previous acquisition attempts involving Samba Bank. In 2021, a consortium—including Samba Bank management, Fatima Fertilizer Company Limited, and Gulf Islamic Investment LLC—expressed a strong interest in acquiring SNB’s 84.51% stake in Samba Bank. However, with SNB choosing to retain its stake for now, any acquisition plans are on hold.
