Merger of two funds creates Rs26bn entity
KARACHI, June 29: The notice by Arif Habib Investments at the stock exchange released on Wednesday, relating to the change of effective date of merger of the company with MCB Asset Management Company, from June 27 to July 30, had raised many an eyebrow. But an official at the regulator’s office said on Thursday that the matter was ‘insignificant’ and did not warrant anxiety.
On the completion of the merger of the two companies, total assets under management would amount to Rs26 billion, which would make the merged entity one of the top five mutual funds in the country.
A day earlier on June 27, the companies had informed investors through the stock exchange that MCB Asset Management Co. Limited had merged with and into Arif Habib Investments Limited.
A Board meeting of the company was held on Monday which had set June 27 (the same day as of the board meeting) as effective date of merger.
The reformed board constitutes Main Mohammad Mansha; Nasim Beg; Dr Salman Shah; Yasir Qadri; Haroon Rasheed; Ahmed Jahangir; Samad A.Habib and Mirza Mahmood Ahmad.
In accordance with the terms of Shareholder’s Agreement dated Jan 19, between MCB Bank Limited and Arif Habib Corporation, Mian Mohammad Mansha was appointed the chairman of the board and Nasim Beg, executive vice chairman.
Yasir Qadri has been appointed CEO of the company, subject to SECP approval.
The investors were provided information to comply with KSE Listing Regulation 16 (1).
But another notice the day following left investors in a quandary. It said that Intimation from SECP was received at company’s offices after closure of business hours on June 27, which had extended the effective date of merger from June 27 to July 30. The company officials, puzzled over the Regulator’s afterthought stated: “We have been advised by our lawyers that the merger is a past and closed transaction.”
The company said that it would convey its point of view to the SECP on the matter.
Information gleaned from the apex regulator’s office on Thursday revealed that there was no issue over the fact that the merger was complete.
“The extension in date is not of any great significance,” said an official who asked not to be named.