Abu Dhabi Group’s star child Bank Alfalah, a mid size bank, is planning to acquire IGI Investment Bank, sources close to matter told EconomyAge.
Bank Alfalah and IGI Investment Bank are in negotiations for a possible takeover of IGI Investment Bank along with two wholly owned subsidiaries.
Bank Alfalah’s officials confirms that the possible takeover would be implemented by way of merger in terms of a scheme amalgamation under Section 48 of Banking Companies Ordinance, 1962.
According to Bank Alfalah, they will soon start due diligence process of IGI Investment Bank. Although it should be kept in mind that this possible takeover deal is subject to, of course, due diligence results and regulatory approvals from State Bank of Pakistan.
Talking to EconomyAge, Bank Alfalah also mentioned that the consideration of this possible takeover deal might involve swap ratio of shares.
IGI Investment Bank was incorporated in 1990 as a joint venture of the Packages Group, American Express Bank and the International Finance Corporation (IFC).
In 2006, IGI Insurance took over the shareholding of American Express, thus becoming a major shareholder in IGI Investment Bank.
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