Escorts Investment Bank has canceled another sale-purchase agreement on behalf of its primary sponsor, Bahria Town (Private) Limited, with three prospective investors.
According to the PSX notification, Escorts Investment Bank Limited has received a notice from Bahria Town (Private) Limited for the termination of the share sale and purchase agreement entered into between Bahria Town (Private) Limited, Mr. Javaid Akhtar, Mr. Zeeshan Javaid, and Mr. Muhammad Ali Kazmi for the acquisition of more than 50% of the shares and control of Escorts Investment Bank Limited.
In its announcement, Bahria Town Private Limited stated that the purchaser was required to fulfill certain requirements, which would result in the deal closing.
However, since the execution date, the purchasers have made little progress in obtaining the necessary governmental permissions and fulfilling the conditions precedent.
Aside from the purchasers’ failure to diligently pursue and complete the criteria, the extended stop date has also passed.
As such, please consider this as our notice under Clause 9 to terminate the Agreement. The Agreement shall stand terminated without any further obligations and liability on the part of the Seller as per the terms of the Agreement.
Earlier this year, Escorts Investment Bank canceled the sale-purchase agreement with the bank’s interested acquirers, Syed Sabur Rehman (Chairman, Progressive Group) and JR Dallas Wealth Management.
According to reports, the bank’s largest shareholder, Bahria Town, was not interested in selling its stock to the interested parties, as indicated by a termination notice of the contract.