KARACHI – Arif Habib Investments (AHI) has officially informed the Karachi Stock Exchange regarding their merger with MCB Asset Management Company.
According to a letter issued to the Karachi Stock Exchange, the AHI stated that its sponsors and MCB Asset Management Company (MCB-AMC) have signed the shareholders’ agreement dated January 19, 2011 for the proposed merger between the two entities. Sponsors of both entities agree that the combined force of MCB and Arif Habib Group will considerably strengthen the asset management business and will spur investor’s interest.
According to the agreement, AHI shall be the surviving entity. In addition, the company shall be re-named as “MCB-Arif Habib Savings and Investments Limited” subject to availability of name and requisite regulatory approvals.
Secondly, based on the agreed swap ratio, shareholders of MCB-AMC shall be issued 1.2 shares in lieu of each share. Thus, the paid up capital of the merged entity shall double to 72,000,000 shares of Rs 10 each, i.e., Rs 720,000,000 (seven hundred and twenty million). Of these shares, 36,000,000 shares will be held by MCB Bank and a similar number by the current shareholders of AHI. In addition, both sponsors shall have an equal representation on the board of the merged entity, while Mian Mohammed Mansha shall be the Board Chairman. Nasim Beg and Yasir Qadri will hold the office of Executive Vice Chairman and Chief Executive Officer of the merged entity, respectively.
