August 2, 2002	Friday	Jamadi-ul-Awwal 22,1423

KARACHI, Aug 1: First Crescent Modaraba on Thursday notified the swap ratio of Rs1.53 in First Crescent Modaraba against each rupee value in Altowfeek Investment Bank Limited. The two companies had earlier announced merger that would create First Standard Investment Bank Limited with more than Rs2.5 billion in total assets.

Shareholders in Altowfeek Investment Bank (ATIBL) and First Crescent Modaraba (FCM) are scheduled to meet at separate extraordinary general meetings on August 6 at Lahore to approve the ‘scheme of arrangement for amalgamation’.

According to the calculations released to the stock exchange on Thursday, the swap ratio is the total of four valuations: (i) The weighted average market value for 52 weeks (January 2001 to December 2001) which works out at Rs2.21 for ATIBL and Rs3.88 for FCM; (ii) break-up value on the date of merger: ATIBL Rs5.74; FCM Rs9.64; (iii) average cash dividend paid over the life of Institution: ATIBL Rs1.36; FCM Rs2.27 and (iv) cost of investment banking license: ATIBL: Re1; FCM: nil. The aggregate for ATIBL thus works out at Rs10.32 and for FCM Rs15.79. That gives the swap ratio of Rs1.53 in FCM for Re1 in ATIBL.