Escorts Investment Bank Receives Another Offer for Majority Stake

Escorts Investment Bank has received yet another offer from a group of investors to acquire 51 percent shares of the bank, which is owned by Bahria Town Limited. According to a stock filing, the manager to the offer on behalf of the acquirers, Mian Javaid Akhtar, Mohammad Ali Kazmi, and Mian Zeeshan Javaid, submitted a Public Announcement of Intention to acquire more than 50 percent of the issued and paid-up share capital of Escorts Investment Bank Limited together with management control. In September 2021, the Escorts Investment Bank had received a Public Announcement of Intention of acquiring shares in the bank, which are held by Bahria Town (Private) Limited. However, the management of the bank did not continue the deal and terminated the sale-purchase deal with the interested acquirers — Syed Sabur Rehman (Chairman, Progressive Group) and JR Dallas Wealth Management. In July 2017, Bahria Town acquired more than 50 percent stake in Escorts Investment Bank. The new owners injected handsome capital into the bank to gain financial stability of operations and the business. The bank expanded its branch network and offered various services to the customers. Later, Bahria Town’s stakes in the bank increased to 87 percent. Despite inheriting huge losses, the bank continued to make revenues from the available options and reduced the losses in each passing quarter. By the end of 2021, the bank reported a huge loss of Rs. 81 million. The investment bank’s assets surged to over Rs. 1 trillion by end of 2021.