Malik Riaz is a Well known property tycoon in Pakistan .Having made his name from Bahria town and Mall of Lahore etc.Malilk’s story of rising from a real state seller to a world leading property developer in the Pakistan. Bahria town started life as shabby failed project dubbed by property dealer who were favoring DHA an Johar town .But Malik Riaz has mad it made it a world leading project expanding from Lahore to all around Pakistan .According to reports Malik Riaz has reportedly Bought investment bank called Escort investment bank for 1 rupee.Escort investment bank was founded in 2009 and was recently unable to fulfill regulatory requirement of NBFC since 2014 .MTO of AKD securities limited announced the deal at Pakistan stock exchange and disclosed the Sale purchase agreement detail.
Bahria town will buy more then 85% of Escorts investments banks shares in 2 different stages they will buy sponsor share’s 71% at the price of Rupee 1. Bahria town will buy rest of shares which are categorized as ordinary shares of bank at Price of Rs 10.23 per share.
Malik Riaz being one of the richest Pakistani’s can easily fulfill the Financial requirement of the regulators. As part of deal Bahria town has paid the Rs 65 Million in cash.Payment was made by cash to Escrow’s account. In 2015 Malik Riaz previously tried to enter into banking sector despite the announcement from both sides deal was unsuccessful. The burj bank was then bought by Al-baraka group next year. Now after 2 years since last attempt the Property tycoon has stepped into Banking final after buying Escort investments for Rupee 1.
Now the major question is why a person who made so much money from Real state is interested into banking ?.Investment banking in Pakistan is not quite really at it’s peak .To readers who really have no idea about investment banking,this is completely different from your average local retail banks who provide cash lending and deposit services .An investment bank is a bank which provides services to private clients .Services offer by Investment banks are securities ,Mergers ,providing or raising the working capital and IPO services usually.I GI Investment bank currently is the market leader for investment banking in Pakistan according to many but with Cpec emerging in Pakistan the corporation between Pakistan and china is giving birth to newly formed industrial and developmental projects in Pakistan .With so many new private projects coming the demand for investment banking might rise as an impact of Pakistan china economic corridor .Malik Riaz and Bahria town group has made the right choice to jump into this new and completely different direction .Only time will that weather the escort investment is matching the world leaders or it’s just an another private firm to transfer cash offshore .