PAKISTAN

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Thursday, July 02, 2009

Suroor Investment acquires Arif Habib Bank

Suroor Investment Ltd. a Mauritius based company is acquiring 297.034 mn shares or 59.5% stake in Arif Habib
Bank Limited (AHBL) at a price of PkR9.0 per share. AHBL has an equity of PkR 5.85 bn translating into book value of
PkR 11.70 per share, trading at P/B multiple of 0.6. AHBL has a paid up capital of PkR 5.0 bn where State Bank has
set the target of Minimum Capital requirement of PkR 6 billion till end December 2009. According to acquisition rules
revised recently, the acquirer is required to have holding between 62.5% to 85% therefore, Suroor Investment
would take up additional holding required to complete the acquisition from the market through a tender offer.

Silk Bank, Atlas Bank merger dropped

The plan of merger of Silk Bank (formerly Saudi Pak Commercial Bank) and Atlas Bank Ltd. has been dropped. This is
mutually decided by the management of the two banks for the merger might not satisfy the long term plans of the
banks.

Market Outlook
The market is expected to gain momentum, marked by improving volumes. An amount of USD 500 mn has been
received from the Asian Development Bank on account of economic stability which would improve the reserve
situation of the country. Positive sentiment driver for the market.

Alfalah Securities Research; research@alfalahsec.com; (9221) 9217825-26

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