RMS (Private) Limited has decided to withdraw its Public Announcement of Intention (PAI) to acquire up to 87.96 percent or 119 million ordinary shares of Escorts Investment Bank Limited. Arif Habib Limited (AHL), the manager to the offer, confirmed this development in a filing to the main bourse on Monday.
The decision to withdraw the offer comes as the time period for making the public announcement of the offer expired on May 12, 2024. AHL cited certain outstanding regulatory and other approvals for the transaction as the reason behind the lapse of the time period.
“In the premises, and pursuant to Regulation 21(1)(e) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017, read with the Securities Act 2015, we hereby give notice that as of the Expiry Date, the PAI stands withdrawn,” AHL declared.
Furthermore, AHL emphasized that this process of withdrawal is being undertaken to ensure compliance with the law.
The withdrawal of the offer signifies a shift in the acquisition landscape and underscores the complexities involved in such transactions. While RMS initially expressed its intention to acquire a significant stake in Escorts Investment Bank Limited, the decision to withdraw the offer reflects the challenges encountered during the regulatory approval process.
As the parties involved navigate the intricacies of regulatory compliance, stakeholders will be keenly observing any future developments in this matter.