Salman Iqbal of ARY plans to invest in Summit Bank.

Salman Iqbal, the owner of the ARY Group, has emerged as an aspirational investor in the loss-making Summit Bank.
After rescinding his proposal to invest in the telecom industry, which eventually ended after lengthy discussions between ARY and WorldCall, the broadcaster has chosen to try his luck in the banking sector.

According to the stock filing, ARY Group owner Salman Iqbal has committed to subscribe to up to 25% of Summit Bank Ltd shares at a price of Rs. 2.51 per share. According to a stock filing on Friday, the move was made as part of a consortium led by Nasser Abdulla Hussain Lootah, a billionaire from the United Arab Emirates.

The consortium intends to purchase at least 51 percent of the bank, which is the second-smallest of the 20 listed institutions in terms of share value.

It would acquire the bank’s majority shareholding and managerial control by issuing new shares and acquiring existing shares in a public offering for Rs. 2.51 per share.

Summit Bank intended to sell at least 51 percent of its voting shares to a UAE-based investor last year for Rs. 2.51 a share after Nasser Abdulla Hussain Lootah, Chairman of the Nasser Abdulla Lootah Group, approached management with an offer to acquire at least 51 percent of the voting shares.

The acquirer and SBL have entered into a share subscription agreement for the proposed transaction. Summit Bank Limited would issue 5,976,095,618 ordinary shares without rights at a subscription price of Rs 2.51 to the acquirer and the bank’s minority shareholders under the terms of the share subscription agreement.

In addition to the acquirer’s subscription of shares under the share subscription agreement, the acquirer will purchase shares from the bank’s shareholders under the offer. The bank’s management considered that the acquisition of Summit Bank was a significant step toward the bank’s required capital infusion.

Former Summit Bank Chairman and Director Nasser Abdullah Hussain Lootah already owns 0.51 percent of the bank. Furthermore, Suroor Investments Limited owns 66.77 percent of the bank, while Rupali Bank owns 1.24 percent.

Summit Bank now has 193 locations, including 43 full-fledged Islamic branches. The bank’s loss after tax for 2021 was Rs. 2.887 billion, compared to Rs. 6.948 billion the previous year, representing a 58 percent improvement.