The United Bank Limited Acquisition Of Khushhali Bank Limited

The United Bank Limited (UBL) led consortium has acquired 67.4 percent shares of Khushhali Bank Limited (KBL) at a share price of Rs20.44 each. The UBL led consortium has been selected as the highest bidder by the selling shareholders of KBL, a micro finance institution. Post acquisition, UBL’s direct shareholding in KBL shall become approximately 29.7 percent.

Asim Siddiqui, of Ernst Young, led the Transaction Support team, which also included Muhammad Awais, as the Transaction Tax partner. I am a partner and am the Country Leader for Transaction Advisory Services in Pakistan.  Our role was to assist the UBL led consortium in the due diligence process and we carried out the financial and tax due diligence of Khushhali Bank Limited. Khozem A. Haidermota, Senior Partner and Mohammad Anwer, Partner, of Haidermota assisted in the transaction.

They commented: “We represented a consortium of sellers comprising of National Bank of Pakistan, MCB Bank Limited, United Bank Limited, Allied Bank Limited, Standard Chartered Bank (Pakistan) Limited, Askari Bank Limited, Citibank N.A., Bank Al Habib Limited, Habib Metropolitan Limited, Royal Bank of Scotland Pakistan, KASB Bank Limited, Silk Bank Limited and Mybank Limited and we have a long standing relationship with such clients.”Liaquat Merchant Associates (LMA) team was led by Darakhshan Sheikh Vohra (Partner) (Pictued) and represented investors’ consortium of United Bank Limited and four foreign microfinance investment/mutual funds.

commented: “It was most challenging due to complex legal nature and inter-relationship of five multi-jurisdictional investors. Funds are subject to their jurisdiction’s stringent legal requirements, donors’/ investment partners’ corporate compliance requirements and Pakistan law requirements.”