On April 8, 2020, the BankIslami Pakistan Limited (BIPL), the holding company of BIPL Securities Limited (BIPLS) made a public announcement informing public that M/s AKD Securities Limited (ASL) intents to acquire up to 77.12% of issued and paid up capital along with management control of BIPL Securities Limited.
The offer was made by ASL through their Manager M/s Topline Securities Limited (TSL) on February 28, 2020. Subsequently, TSL approached BIPL for allowing access to data room for due diligence of BIPLS. Due to non-participation of ASL in the formal process initiated by BIPL through its adviser M/s KPMG Taseer Hadi & Co. for the sale of its shareholding in BIPLS, the request was declined by BIPL. However, the BIPL stated that in the event that the negotiations with the potential buyers do not proceed in a satisfactory manner, the request of ASL may be considered.
On May 18, 2020, the BIPL informed Pakistan Stock Exchange (PSX) that they have reconsidered earlier decision, particularly in view of the direction issued by the SECP to BIPL Securities to provide AKD with all relevant and material information which AKD require for the purposes of due diligence. Accordingly, BIPL has accepted ASL’s request for allowing to access to the data room for the purposes of conducting due diligence.
Pursuant to the amalgamation of KASB Bank Limited with and into BIPL by the Federal Government, BIPL Securities is a subsidiary of BIPL. BIPL Securities is a full service brokerage house listed on the Pakistan Stock Exchange (PSX) and functioning since 1962. The primary shareholder of BIPL Securities is Bankislami Pakistan with a whooping 77.12% share holding.
On the other hand, AKD Securities Ltd. is one of the leading securities firm in Pakistan accounting for more than 6% of the average daily value of the PSX. ASL has the top credit rating in brokerage firms sector in the Pakistan.
