MCB Bank has completed the acquisition of an additional 30 percent stake in its subsidiary, MCB-Arif Habib Savings and Investments at the cost of Rs. 649 million.
According to a stock filing to a Pakistan Stock Exchange (PSX), MCB Bank received 21.6 million shares or 30 percent stake of another sponsor, Arif Habib Corporation, at the share price of Rs. 30. Hence, its overall shareholding in the subsidiary increased to over 81 percent from 51 percent.
The shares swap deal has been approved by corporate and regulatory authorities including the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, and shareholders of the bank, the notification issued to PSX stated.
The increase in shareholding is a strategic move to enhance shareholding in profitable entities. Similar to MCB Bank, various commercial banks in recent months have increased their shareholdings in the subsidiary or associated companies managing assets and mutual funds including Askari Bank, Bank Al-Habib, Faysal Bank and etc.
MCB-AH 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).
MCB-AH is currently managing eighteen (18) Open-end Schemes, two (2) Voluntary Pension Schemes, and more than fifty (50) 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 MCB-AH as of December 2022 stood at more than Rs. 226.87 billion.
Hmmm nice