LAHORE, Jan 23: Pakistan Industrial Leasing Corporation and Trust Investment Bank will hold their EGMs here on Jan 31 to seek approval from the shareholders for the proposed merger of the two financial institutions.

“We’re working out the details, including the share swap rate, of the merger and will finalize them before we go to the EGMs to seek shareholders approval,” said an official of Pilcorp. A joint venture between International Finance Corporation and Crescent Group of Companies, Pilcorp is Pakistan’s fourth largest leasing company in terms of its total assets and net investments in leases. Crescent Group and a business family from Faisalabad has majority shareholding in TIB.

Pilcorp managing director Rashid Ahmed told Dawn on Wednesday that the merger of the two financial institutions would allow the “new company” to meet the minimum equity and paid-up capital requirement of the regulators to do business in leasing, investment banking, investment and corporate advisory and housing finance.

Pilcorp has a paid-up capital of Rs218 million and a net worth of Rs584 million as of June 30, 2001. Similarly, TIB’s capital is stated to be Rs100 million with total equity of Rs144 million as of June 30, 2001. Pilcorp’s pre-tax profit stood at Rs116 million. TIB’s pre-tax earnings during last financial year were Rs6.5 million.

This will be second merger of a leasing company with an investment bank. The merger process of Atlas Investment and Atlas Leasing is in the final stages.

Pilcorp’s third issue of term finance certificates (TFCs) of Rs600 million has been delayed by the management because of its proposed merger with TIB.