Habib Metropolitan Modaraba Management Company (Private) Limited (HMMCL) and Habib Metro Modaraba (HMM) will merge operations to do business as one entity.
According to the stock filing, the board of directors of Habib Metropolitan Modaraba Management Company (Private) Limited, approved the draft Scheme of Arrangement as per which Habib Metro Modaraba (HMM) shall be merged, by way of amalgamation, with and into First Habib Modaraba (FHM).
As a consequence, an aggregate of 20,061,000 modaraba certificates of FHM shall be issued to the modaraba certificate holders of HMM, based on a swap ratio of 0.6687 modaraba certificates of FHM for every 1 modaraba certificate of HMM.
As per the notice, it is subject to obtaining necessary certificate holders’, creditors’, and regulatory approvals (including the approval of the Registrar of Modarabas), and sanction of the High Court of Sindh at Karachi, along with the fulfillment of related legal formalities. It is further subject to any changes or modifications thereto as may be required or prescribed, or such amendments as may be considered necessary, without materially affecting the substance thereof, it added.
The scheme will be circulated to the PSX and the certificate holders in due course subject to directions/order of the High Court of Sindh at Karachi, and in accordance with the applicable laws.
There are 27 Modarabas operating in Pakistan, according to the website of the NBFI & Modaraba Association of Pakistan. The sector is also highly competitive and currently running in losses.
