Arif Habib Limited (PSX: AHL) and Arif Habib Corporation Limited (PSX: AHCL) will enter into an arrangement for corporate restructuring, AHL informed the Pakistan Stock Exchange on Friday.
During today’s emergent meeting of the Board of Directors, AHL’s Board has authorized the company to enter into an arrangement with its holding company, Arif Habib Corporation Limited (AHCL), in terms of a Scheme of Arrangement (Scheme) involving the demerger of certain non-core business, including assets, liabilities, and obligations, from AHL, and merger/amalgamation of the same with and into AHCL.
“In consideration of the Proposed Arrangement, it is intended that ordinary shares of AHCL will be issued to the shareholders of AHL (other than AHCL) based on a swap ratio of 0.8673; i.e. 86.73 ordinary shares of AHCL will be issued for every 100 ordinary shares of AHL held by each AHL Shareholder at the time (other than AHCL), in accordance with the Scheme,” the filing said.
Such AHCL shares will be issued in addition to the existing shares of AHL held by the shareholders of AHL at the time, and there shall be no cancellation of the shares of AHL.
The arrangement shall be subject to the completion of necessary corporate and regulatory formalities, including obtaining requisite approvals from the relevant stakeholders/regulators, in accordance with the applicable laws, and sanction of the Scheme by the High Court of Sindh at Karachi, for which purposes the Board has, inter alia, authorized AHL to file a petition with the High Court, the filing added.
