KARACHI: Bahria Town Ltd said on Tuesday it intends to acquire a
majority shareholding in Escorts Investment Bank, a non-banking finance
company.
In a regulatory filing to the Pakistan Stock Exchange, AKD
Securities stated on behalf of Bahria Town that the real estate company is
interested in buying up to 71.16 per cent shares in the relatively small
investment bank along with management control.
Founded by property tycoon Malik Riaz, Bahria Town is currently
led by its CEO Ahmed Ali Riaz Malik, while Bina Riaz is the only other director
on its board.
Last year, Bahria Town showed interest in acquiring a majority
stake in Burj Bank, but the State Bank of Pakistan (SBP) turned down its
request for unknown reasons.
Unlike Burj Bank that existed as a commercial bank and fell
within the regulatory purview of the SBP, Escorts Investment Bank is a
non-banking finance company regulated by the Securities and Exchange Commission
of Pakistan (SECP).
Unlike a commercial bank, investment banks deal mostly with the
corporate sector, trade shares in bulk and do not accept deposits from the
general public.
Lahore-based Essem Power Ltd currently owns 39pc shares in
Escorts Investment Bank. Another 31.54pc shares in the bank are owned by its
CEO Bashir Ahmed and three of his family members.
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