Kuwait's Noor Financial to divest stake in Pakistan's largest Islamic bank

May 19, 2018

Noor Financial's stake last year was valued at $375 million

Noor Financial Investment Company will divest a portion of its 49 percent stake in Meezan Bank, Pakistan’s largest Shariah-compliant lender and sixth largest bank.

The company is in “preliminary non-binding discussions with foreign institutional investors for a proposed divestment of 9.59% of the total issued and paid up capital of Meezan”, a filing with the Pakistan Stock Exchange dated May 16, 2018 read.

Noor, a publicly listed investment company that manages the wealth of a number of Kuwait’s richest investors, has been mulling a sale since at least 2013.

In 2017, Bloomberg reported that it had hired Credit Suisse Group AG to explore options for the holding.

Meezan Bank is Pakistan’s fastest growing bank, according to a report by Pakistani Daily, Pakistan Today. The bank has posted a profit in each year of operation and its net profits grew 13.5 percent in 2017 to $93 million.

Noor’s stake in the bank was valued at $375 million in 2017.