Faysal Bank sponsor Ithmaar, GFH terminate deal discussions

April 16, 2025 (MLN): Faysal Bank Limited (PSX: FABL)'s sponsor shareholder, Ithmaar Holding B.S.C., and GFH Financial Group B.S.C. (GFH) have mutually agreed to terminate discussions regarding the potential acquisition of Ithmaar’s financing and investment portfolio.

This follows detailed discussions between the parties, the notification issued to the local bourse.

As per the earlier disclosure dated May 30, 2024, there are no other material aspects related to this matter that require disclosure at this time.

The Board of Directors has authorized the undersigned to issue this disclosure.

Extraordinary General Meetings (EOGM) of shareholders of Ithmaar Holding B.S.C. and its two wholly owned subsidiaries, Ithmaar Bank B.S.C. (Closed) and IB Capital B.S.C. (Closed) (together, "Ithmaar"), were held on May 28 and May 29, 2024.

The meetings were conducted with respect to the planned sale/transfer of certain assets and liabilities of Ithmaar to GFH.

Ithmaar Bank B.S.C. (Closed), directly and indirectly through other Group Entities, owns 66.7% shares of Faysal Bank Limited (FBL).

One of the agenda items of the EOGM, which has been approved by the shareholders of Ithmaar, is the proposed sale and/or transfer of 75% of Ithmaar’s current stake in FBL.

This translates into around 50% of the total outstanding shares of FBL, thereby representing the controlling interest, to GFH or any of its subsidiaries or nominee companies.

The proposed transaction is subject to all necessary regulatory approvals and full compliance with all legal requirements in Pakistan, the Kingdom of Bahrain, and other relevant geographies.

An agreement is planned to be formalized in the coming weeks, with execution subject to all regulatory and legal approvals.

It is important to note that, even post-execution of the transaction, FBL plans to maintain its current strategy of strong business growth through continued focus on effective execution of its strategic corporate plan.

This includes accelerated branch network expansion, emphasis on human resources and continuity of the senior management team, and investment in technology and digital channels.

It also involves providing top-of-the-line customer service with the largest range of fully Shariah-compliant products all aligned with FBL’s mission to be the best Islamic bank in Pakistan.

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