JSCL Board decides to divest its subsidiary

The Board of Directors of Jahangir Siddiqui and Company Limited (JSCL) has decided to dispose of the entire investment of the company comprising 21,245,184 ordinary shares of the face value of Rs 10 each which is 70.82 percent of the total paid-up capital of Network Microfinance Bank Limited, a subsidiary of JSCL subject to the approval of the shareholders and compliance with other necessary legal formalities and consents of the regulatory bodies, wherever required.
The board of directors of the company took this decision in a meeting held on May 18, 2011. According to a notice sent to Karachi Stock Exchange, the company has received Expression of Interest from potential investors, which will be considered subject to necessary legal formalities and consents of regulatory bodies wherever required.
In the same meeting, the Board of Directors of JSCL approved the swap ratio for the acquisition of shares of JS Bank Limited (JSBL) in exchange for 43.47 percent shareholding of the company in JS Global Capital Limited (JSGCL) comprising of 21,734,826 ordinary shares of the face value of Rs 10 each ie 7.26034550 shares of face value of Rs 10 each in JSBL for every one share of the face value of Rs 10 each in JSGCL.
The swap ratio for the issue of new shares of JSBL to JSCL and other shareholders of JSGCL has been determined by the independent financial advisor, M/s M. Yousuf Adil Saleem and Company, Chartered Accountants based on the break up values of Rs 51.8630081 for JSGCL and Rs 7.14332508 for JSBL computed by the respective statutory auditors as of December 31, 2010 in terms of SBP's approval.
The new shares of JSBL will be issued as otherwise than right shares at a price of Rs 7.14332508 ie at a discount of Rs 2.85667492 per share to JSCL and other shareholders of JSGCL subject to completion of legal formalities including the approval of shareholders of JSCL and JSBL and the Securities and Exchange Commission of Pakistan. The Extraordinary General Meeting of the company will be held on June 15, 2011 at Karachi to approve the above transaction.