Update: As we reported about a row between AKD Securities and Bank Islami over the due diligence process of BIPL Securities, now we have been told by a source aware about the situation that AKD Securities was denied due diligence process on technical grounds. “AKD Securities applied for due diligence after due date therefore, Bank Islami declined their request,” a source privy to the matter said. “Bank Islami asked AKD Securities to take permission from SECP which AKD Securities did.”
Earlier we reported
Karachi (Market Reporter): Bank Islami has finally agreed to stop resisting the take over bid of AKD Securities which had shown the intention to purchase 77.12 percent shares and management control of BIPL Securities, a subsidy of Bank Islami. Security and Exchange Commission’s directives forced Bank Islami to stop blocking due diligence process request made by the AKD Securities.
AKD Securities had expressed interest in acquiring 77.12 percent of issued and paid up capital and management control of BIPL Securities. However, Bank Islami on April 8, 2020 declined AKD’s request for due diligence and denied access to the data room.
AKD Securities contacted the regulator, SECP, which eventually stepped in the sale out scheme. SECP directed Bank Islami on May 5, to open data room for AKD Securities. “In view of the direction issued by the Commission to BIPL Securities to provide AKD with all relevant and material information which AKD require for the purpose of due diligence,” Bank Islami announced that it had reconsidered its decision, in a letter sent to the Pakistan Stock Exchange today.
After due diligence, Bank Islami has a right to accept AKD’s offer or reject it. It seems this corporate tussle will continue for the time being.