May 07, 2008	Wednesday	Jamadi-ul-Awwal 1, 1429

KARACHI, May 6: The acquisition of 15 per cent shares in MCB Bank by the Malayan Banking Berhad (Maybank) would bring bonanza of Rs5.6 billion for Adamjee Insurance, analysts said, given the fact that the Malaysian bank would be acquiring 2 per cent of the MCB Bank’s stock held by the group’s insurance company.

But the major gainers would distinctly be the individual shareholders of the Mansha family.

Adamjee would be selling 2pc of MCB Bank stock, thereby realising cash of Rs5.6 billion. Analysts calculated that in case Adamjee invests that amount in government risk free securities that give a yield at 10 per cent, the company would be able to earn Rs560 million a year, which would, augment its income from core business operations.

The Maybank share purchase agreement to acquire 15 pc or 94 million shares in MCB Bank at Rs470 per share (at 11 per cent premium to the market price) would fetch approximately Rs44.29 billion ($686 million) in cash.

In addition, the foreign buyer has the option to increase its holding to 20pc over the next 12 months, which would raise the total cash consideration to $920 million.

The stake would be acquired from Nishat (Mansha) group holdings.

The sale-purchase agreement stipulates acquisition of 2

per cent stake from Adamjee insurance; 2.5pc from Mansha family (Mian Umer Mansha, Muhammad Saleem); 8pc from MCB Employees Pension fund; 1pc from MCB Provident Fund and 1.5pc from Nishat Mills Employees Pension Fund.

The second tranche of 5 per cent shares to make a total of 20pc, would be acquired from three individual investors: Mian Umer Mansha; Mian Hasan Mansha and Muhammad Saleem.

“If the group can sell the Pakistani bank abroad at premium under such dismal political and economic scenario,” says a market participant, “whatever it earns is a well-earned income that also should be looked at as doing well for the country”.