Daily Times

KARACHI: In a bid to rebalance its investment portfolio, the Noor Financial Investment Company (Noor), a publicly listed company in Kuwait, has sought the State Bank of Pakistan (SBP)’s approval to consummate its divestment of 9.59 percent ordinary shares in Meezan Bank.

Earlier, in 2014, Noor had planned to sell its 49.1 percent stake in Meezan for $190 million. However, the SBP had blocked that transaction citing that potential buyer was using an offshore company to conduct the transaction.

On Wednesday, Noor, which currently owns approximately 49.11 percent of the issued and paid up capital of Meezan Bank, said in a bourse filing that the company is in preliminary non-binding discussions with foreign institutional investors for a proposed divestment of 101,900,000 ordinary shares in Meezan, constituting a total of 9.59 percent of the total issued and paid up capital of Meezan, on such terms and conditions as may be mutually agreed between the parties.

In this regard, Noor has requested Meezan Bank to approach the SBP for the unblocking of the Sale Shares to enable it to consummate the proposed transaction.

Noor’s current ownership of approximately 49.11 of the issued and paid up capital of Meezan is currently lying in a blocked account maintained with the Central Depository Company Limited (CDC).

As per copy of the letter from Noor to the Meezan Bank, the Kuwait based financial company has informed the Meezan Bank that it (Noor) is in preliminary non-binding discussions with foreign institutional investors for a proposed divestment. However, the company did not disclose the information of the potential buyer.

Last year, Noor hired investment bank Credit Suisse Group AG to explore options for the holding, including finding possible buyers.

Chairman Noor Group, Dr. Fahad Sulaiman Al-Khaled, in annual report for 2017, said as part of Noor’s plan to rebalance its investment portfolio, Noor has made exits during the year from a few of its investments worth KD 4 million. Furthermore, Noor has sold some of its real estate investments amounting to KD 4.7 million in order to reap capital gains as well as to provide liquidity to finance its real estate projects.

It is to be noted that Noor settled its entire debt with one of the lenders by paying KD 4.8 million which resulted in KD 2 million gains for the year 2017. Since year 2012, Noor (on standalone basis) has settled KD 65 million towards its debt. Currently, Noor is negotiating restructuring of its facilities of KD 90 million with the lenders and is hopeful to bring it to a successful closure during the year 2018.

Noor is engaged in investment activities and financial services primarily in Kuwait, the Middle East, Asia, and other emerging markets.

Published in Daily Times, May 17^th 2018.