Karachi: Bank Alfalah Limited has announced that it will hold its 33rd Annual General Meeting (AGM) on March 20, 2025, at 10:30 a.m. at the Movenpick Hotel in Karachi. The meeting's agenda includes a significant proposal for the sale of the bank's entire shareholding in its subsidiary, Alfalah Securities (Private) Limited.
The bank's board of directors has recommended this proposal, which involves selling 324,999,912 shares, representing 95.59% of Alfalah Securities' issued and paid-up capital, to Optimus Capital Management (Private) Limited. The transaction is valued at PKR 313.04 million, subject to adjustments based on net equity at the closing date.
According to the Statement of Material Facts under section 134(3) of the Companies Act, 2017, the transaction has been thoroughly vetted by the bank's board. The board confirmed that due diligence for the disposal has been conducted as per regulatory requirements. The proposal will be presented as Agenda Item No. 6 during the AGM.
The market value of Alfalah Securities, as determined by an approved external valuer using the discounted cash flow method, stands at PKR 250.00 million. The net worth of the subsidiary was reported at (PKR 711.00 million) as per its audited financial statements for the year ending December 31, 2023. More recent interim financial statements, ending June 30, 2024, show a net worth of PKR 290.00 million.
The total consideration for the sale is set at PKR 313.04 million, which is based on the company's net equity from its reviewed financial statements as of June 30, 2024, along with certain adjustments. According to information available from the Pakistan Stock Exchange (PSX), the transaction is expected to allow Bank Alfalah to better concentrate its efforts on its core commercial banking operations.
The AGM notice, along with the Statement of Material Facts and a ballot paper for postal voting on the special business agenda, will be published in English and Urdu newspapers on February 27, 2025, for dissemination among shareholders. The bank has also made provisions for proxy voting, allowing shareholders to express their assent or dissent to the resolution through a ballot system.
Bank Alfalah's engagement with its shareholders in this decision underscores its strategic move to streamline operations and concentrate on its primary banking activities within the designated market category of commercial banking.