MCB Bank to Acquire 30% Additional Stake in Asset Management Company

MCB Bank is all set to acquire an additional 30 percent stake in its subsidiary, MCB-Arif Habib Savings and Investments (MCBAH) at a cost of Rs. 649 million.

According to a stock filing, MCB Bank has received approval from its board of directors to acquire 21.6 million shares or a 30 percent stake of another sponsor, Arif Habib Corporation, at a share price of Rs. 30.

The deal is subject to corporate and regulatory approvals including approvals from the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) and shareholders of the bank.

It is pertinent to mention here that MCB Bank owns 36.9 million shares or 51.33 percent stake (majority shareholding) in MCBAH Savings and Investments Limited. The increase in shareholding is a strategic move to enhance shareholding in profitable entities.

Transition of MCBAH

MCBAH was incorporated in the name of Arif Habib Investment Management Limited (AHIML) on August 30, 2000, as an unquoted Public Limited Company.

In 2011, a transfer agreement was signed between Arif Habib Corporation Limited (AHCL) [the then parent of AHIL] and MCB Bank Limited (MCB Bank) [the then parent of MCB Asset Management Company Limited (MCB AMC)] for the transfer of the entire business of MCB AMC to AHIL to achieve synergies in business and to access a wider distribution network.

The two companies merged to become MCB Arif Habib Savings and Investments Limited by mid of 2011.

MCBAH Limited is one of the leading asset management companies in the fund management sector and a few companies within a sector which is also listed with the Pakistan Stock Exchange (PSX).

MCBAH is currently managing eighteen Open-end Schemes, two Voluntary Pension Schemes, and more than fifty Discretionary and Non-Discretionary Portfolios.

The company has over 150,000 customers comprising individuals, sole proprietorships, retirement funds, public and private sector entities, and charitable institutions. The assets under the management of MCBAH as of December 2022 stood at more than Rs. 226.87 billion.