MCB Bank buys RBS's Pakistan business

MCB Bank has bought the Pakistan operations of the Royal Bank of Scotland RBS, paying a price of PRs7.2 billion $87.4 million for a 99.37% stake in RBS Pakistan.

The agreed price represents a price-to-book-value ratio of 0.73 times based on a book value of RBS of PRs9.9 billion at the end of the first quarter of financial 2009 and 0.72 times fiscal 2008 book value.

Others buyers reported to have been interested in the asset include two Pakistani banks, Habib Bank and JS Bank, as well as Egypt's Orascom Telecom Holding. All other bidders dropped out by stage two, said a source close to the situation, and the deal was finally negotiated on...