KARACHI, Dec 6: With the acquiring of majority stakes in PICIC by NIB Bank, a subsidiary of Singapore’s state investment agency Temasek, another rising local bank will come under control of a foreign entity at an estimated cost of about $338 million.

A group of stakeholders of PICIC (Pakistan Industrial Credit Investment Corporation) finalised its talks with the NIB Bank on Tuesday to sell 46 per cent shares.

The stock market was notified on Wednesday that a group of shareholders had informed PICIC of their intent to sell their shareholding including their beneficial ownership in PICIC.

NIB Bank also notified that it had reached an agreement in principle with certain shareholders of PICIC for the acquisition of their respective shareholding in PICIC.

“We have reached an agreement with the stakeholders of the PICIC and we have informed the State Bank asking for the due-diligence of PICIC,” NIB Bank President Khawaja Iqbal Hassan told Dawn.

“We will buy the majority stakes but cannot say exactly the percentage of holding,” he said. He said NIB Bank at present has no shares in PICIC.

The group which held talks for the sale of PICIC share comprised of NIT, Crescent group and Bashir Jan Mohammad. Their collective stakes are 46 per cent. The NIB Bank may buy more from the market to enable it to hold majority shares.

Sources said that NIB Bank also approached State Life which has about 16 per cent shares in PICIC but so far is not ready to sell its stakes.

Khawaja Iqbal said that it was not possible to say that how long it would take to complete the transfer of shares but the procedure would be carried out quickly after approval of the State Bank.

The PICIC shareholdings are divided and institutions like NIT and Crescent group have significant weight in the corporation, however, Khawaja Iqbal said he did not know exactly the break-up of the holdings. The acquisition will be done though NIB Bank and not directly by Temasek.

Price of the share is yet to be finalised but the banking sources said it would be in the range of Rs82 to Rs83.

Sources said that the sale would bring about $338 million which would be the second biggest investment after the sale of Union Bank for over $500 million.

The boom in banking sector which has been earning record profits for more than two years attracted a number of foreign large banks. Another deal of Prime Bank with ABN Amro is expected as the due-diligence is underway.

However, the analysts said that despite acquisition of PICIC, no foreign bank would cross the huge volume of large banks like NBP, MCB, HBL, UBL, and ABL especially in terms of deposits and advances.

The website shows that the Temasek also has a stake of 11.5 per cent in Standard Chartered Plc.

The PICIC’s assets were in the tune of Rs40.5 billion with 129 branches across the country.