March 15, 2023 (MLN): JS Bank Limited (PSX: JSBL) has been granted permission by the honorable Sindh High Court (SHC) to proceed with the proposed acquisition of majority shares and control of Bankislami Pakistan Limited (PSX: BIPL).
This decision comes after an interim injunction was granted against the acquisition on March 7, 2023, on the application of Plaintiffs namely Muhammad Ayub Tareen, Mohsin Balaghanwala, Asif Mannan, and AKD Investment Management Limited.
However, on March 14, 2023, the SHC modified the temporary injunction and allowed the acquisition process to continue, subject to the outcome of the appeal.
The appeal was made in response to the initial injunction, which had temporarily halted the acquisition process.
It is important to note that the JS Group, a prominent Pakistani conglomerate, had come under fire for alleged discriminatory behavior towards minority shareholders of BIPL in a recent transaction that appears to have some anomalies.
The transaction in question involves the sale of 21.26% of BIPL shares by Jahangir Siddiqui & Co Ltd (JSCL) to JS Bank Ltd (JSBL). On Feb 16th, announced it would sell BIPL shares to the latter, subject to regulatory approvals and shareholder consent.