Lovells has advised Standard Chartered (Pakistan) on its acquisition of an 80.9 per cent stake in Union Bank for $413m (£218.73m), marking the biggest deal in the Pakistan banking sector to date.
The firm was the only UK firm involved in the deal, working alongside Pakistani law firm Haidermota & Co on local law advice. Mandviwalla & Zafar advised Union Bank on all aspects of the deal.
The acquisition was signed on 9 August. Under Pakistani law, Standard Chartered is obliged to tender an offer for the remaining 19.1 per cent stake of Union Bank. The process started on 12 August and is expected to close on 1 September.
Union Bank is Pakistan’s eighth-largest bank and the acquisition will make Standard Chartered the sixth-largest bank in Pakistan by market share.
Lovells head of corporate finance Hugh Nineham led the advice to Standard Chartered, aided by associate partner James Parker.
Lovells worked closely with Standard Chartered’s in-house lawyers on the deal. The bank is funding the acquisition from its own internal cash resources, and the lack of lending institutions removed the need for Union Bank to have English law advice.
Both Pakistani firms led the advice out of their Karachi offices.