One of China’s Premier investment banks, Credit Lyonnais Securities Asia (CLSA) is set to enter Pakistan’s brokerage and investment sector through an investment in Bank Alfalah’s subsidiary Alfalah Securities.
Alfalah Securities will be issuing right shares and Bank Alfalah being the major shareholder is not subscribing, hence its share will be distributed between three parties including CLSA.
According to the notification to the bourse, the bank announced that the Board has authorized it to renounce the Bank’s entitlement of the said Right Shares, as and when offered to the bank by AFS, in favour of Mr. Aliuddin Ansari, Mr. Atif Khan and CLSA JV Holdings Private Limited, in such proportions/extent as mutually agreed between the management of the Bank, the new Investors and AFS, for the purposes of entering into a partnership with the new investors who shall bring in valuable experience for the business of AFS.
The management has also been authorized for the necessary documents for such purpose; which may be required to successfully complete the contemplated transaction.
Two weeks ago, CLSA announced that it is finalizing deals for joint ventures in Pakistan, Vietnam and Bangladesh, as it follows its state-owned Chinese parent Citic into developing markets across Asia.
The deals were in advanced stages and expected to be completed by the end of the year, marking a significant expansion for the company that already has offices in 13 other countries across the Asia-Pacific region.
In January, it was reported that Credit Lyonnais Securities Asia (CLSA) was eager to enter into Pakistan as it saw significant investment opportunities.
CLSA’s Chairman Zhenyi Tang, in January, said that China enjoys close relations with Pakistan and especially now due to China-Pakistan Economic Corridor (CPEC) where the potential for investment seems more promising.
Mr Zhenyi had termed Pakistan as a more preferable destination compared to the United Kingdom in terms of expansion potential.