December 3, 2003	Wednesday	Shawwal 8, 1424

KARACHI, Dec 2: First Standard Investment Bank Limited has called an ordinary general meeting of members on Wednesday, which, if thought fit, would approve, adopt and agree to separate schemes of arrangement for merger of Pacific Leasing Company Limited, Paramount Leasing Limited and First Leasing Corporation Limited into First Standard Investment Bank Limited.

On the same day, shareholders in Pacific Leasing Company would approve scheme of arrangement for merger of the company into First Standard Investment Bank Limited, subject to completion of formalities and approval by the Securities and Exchange Commission of Pakistan.

A day earlier on Tuesday shareholders in Paramount Leasing had approved scheme of arrangement for merger of the company into First Standard Investment Bank.

First Standard Investment Bank was born following the amalgamation last year between Altowfeek Investment Bank Limited — 60pc controlled by AlBaraka Investment & Development Co, Jeddah — and First Crescent Modaraba. As a result of that merger, the Crescent Group was believed to have acquired 35 per cent shareholding with three nominees on a seven-member board of directors, while AlBaraka Investment held 14 per cent stake and a claim to two seats on the board of the First Standard Investment Bank Limited.

In July last year, the Crescent group had purchased strategic equity interest held by Pak-Libya Holdings Limited in First Leasing Company and Paramount Leasing for Rs175 million. Interestingly, unlike all other leasing companies, those two were the exceptions where over 80 per cent equity was vested in financial institutions. That was why acquisition of majority stake looked both an easier and a timely strategic move.

Those keeping an eye on the country’s financial sector affirmed that the Crescent Group was following the strategy of eventually combining all of its financial assets: Modaraba (First Crescent Modaraba), investment bank (Altowfeek Investment Bank) and leasing companies (Paramount and First Leasing) into First Standard Investment Bank Limited.

It is understood that the bank would hold more than three-quarter of a billion rupees in capital and around Rs10bn in assets. The consolidation of such huge financial assets into one entity, would inevitably mean reduction in common overheads and rationalization of personnel. There could be some job losses, but the group has kept those cards close to the chest.