Temasek to invest up to $147 mln in Pakistan NIB Bank
KARACHI, Oct 29 (Reuters) - Singapore soverign wealth fund Temasek Holdings [TEM.UL] has agreed to a further investment of up to 12 billion rupees ($147 million) in Pakistan's NIB Bank (NDIF.KA) via a rights issue, NIB said.
Temasek, already NIB's largest shareholder with 63.15 percent, will participate in the Pakistani bank's 12 billion rupee rights issue and subscribe for shares not taken up by minority holders.
The rights issue will be offered to all existing shareholders at a ratio of 42.198 shares at par value, which is 10 rupees per share, for every 100 shares held as of Nov. 19.
NIB shares last traded at 8.45 rupees each, giving it a market value of close to $300 million.
"The purpose of the rights issue is to bolster NIB's capital to meet the opportunities and challenges that the board expects will be presented over the next few years," NIB said in a statement dated on Monday.
If Temasek takes up the entire rights issue, its stake in NIB will rise to about 75 percent, according to Farhan Rizvi, analyst at JS Global Capital Ltd.
According to NIB, with the rights issue, its paid-up capital will increase to over 40 billion rupees ($490 million), the highest of all Pakistani banks. ($1 = 81.62 Pakistani rupees) (Reporting by Sahar Ahmed; Editing by Kim Coghill)
