Noor Financial Sells Shares Worth Rs 2.61 Billion of Meezan Bank

Noor Financial Investment Company continued with its divestment plans in Meezan Bank as it sold over 36 million shares to foreign investors at Rs 72.30 per share, with a total value of Rs. 2.61 billion. According to its recent stock filing, Noor Financial successfully sold 36,164,255 shares of Meezan Bank Limited, constituting 3.4% of the total issued shares and paid-up capital of the Islamic bank. The shareholder did not make the buyer of the shares public. However, the volume of sold shares was higher than the expected target of the leading investor of Meezan Bank. Some three months ago, the company sold over 3 million shares of Meezan Bank to foreign investors at a value of Rs. 211 million constituting, a figure that constituted 0.28% of the shares, for Rs 70 per share. Overall, it divested an amount of Rs. 2.821 billion or 3.68 percent shareholding to date. Noor Financial Investment Company holds substantial stakes in Meezan Bank, with the firm holding 49.11% of the bank’s shares. Earlier this year, it informed the Stock Exchange of its intention to divest more than 9.50 percent of its holdings in Pakistan’s largest Shariah-compliant bank. It informed the exchange that it has successfully consummated the disinvestment/sale of 26,447,000 ordinary shares in Meezan Bank, constituting 2.49% of the total issued and paid-up capital of Meezan Bank to foreign institutional investors at a purchase price of Rs.70/-share. It had been in talks with six investors from USA and EU. In November 2013, SBP rejected the request of Noor Financial Investment Company for unblocking its sale of shares maintained by the CDC account. Vision Financial Holdings approached Noor Financial to buy its entire shares of 522 million (49.1%) in Meezan Bank. The offer expired later on April 15 2014. Noor Financial said that it planned to sell its 49.1% stake in Meezan for $190 million and expected to book a $24 million profit from the deal.