AHL to End Commodities Brokerage Business – Newspaper

KARACHI: Stock brokerage Arif Habib Ltd (AHL) plans to shut down its commodity brokerage business, a company official told Dawn on Tuesday.

AHL currently owns a 100% stake in Arif Habib Commodities Ltd (AHCL), an unlisted subsidiary that deals in commodities brokerage.

“AHL has sought shareholder approval for the divestiture/liquidation of the commodity brokerage subsidiary,” AHL Director Mohsin Madni said.

A publicly traded company, AHL is one of the leading stock brokerage firms operating in the country. Its consolidated profit in 2021-22 was 826.3 million rupees, down 60.7% from a year ago.

The cost and book value of the investment in AHCL was Rs 38 million at the end of 2021-22. His net worth as per latest audited financial statements was Rs 90.1 million.

As AHCL is an unlisted subsidiary, its value per share will be determined by a registered “Assessor” who has obtained a satisfactory quality control assessment by the Institute of Chartered Accountants of Pakistan after finalization of the method of assignment by the AHL Board of Directors. directors.

The amount realized will be used by AHL to meet its working capital needs, according to a resolution passed at the company’s annual general meeting (AGM) held on October 15.

According to Mr Madni, the commodity brokerage is a “small business” of the Arif Habib group. “AHL intends to focus and further capitalize its resources on its core business area where it sees many opportunities in the near future,” he said.

“Our working capital needs are well covered. However, the anticipated sale proceeds will be used in working capital management,” he added.

Separately, the AGM passed another resolution regarding the sale of another wholly owned subsidiary, Arif Habib 1857 Ltd, to AHL’s non-executive director, Nida Ahsan, for Rs50m.

Since July 2014, AHL owns 100% of the shares of Arif Habib 1857 Ltd, whose main activity includes stock trading and brokerage.

It was formed with the intention of bringing in a foreign investor as a sponsor. However, foreign investors were unable to obtain regulatory approvals and licenses from authorities in their home countries.

In accordance with the Securities Dealers (Licensing and Operations) Regulations 2016, AHL is not permitted to hold a controlling interest in any other company holding a securities broker’s licence.

Posted in Dawn, October 19, 2022

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