AHCL enters in a put option agreement with Silk Bank and Investors – Alfalah Securities Limited

Karachi, December 03, 2012 (PPI-OT): Arif Habib Company Limited (AHCL) has entered into a put option agreement with Silk Bank (SILK) and the subscribers of Preference shares of SILK.

According to Alfalah Securities Limited, the preference shares will be of PkR 960 mn worth of issue privately placed, perpetual, non‐cumulative preference shares of SILK having the value of PkR 2.50 per share having 3 year tenor. These preference shares will be convertible to ordinary shares of SILK at the conversion ratio of 1:1.

The subscribers or identified investors will have an option to exercise the put option at the end of the tenor through which they can sell their shares to AHCL at the strike price of PkR 3.70 per share. In case of the execution of put option, SILK will pay 2.5% put option fee on quarterly basis. SILK will also pay 5% of the Price paid by AHCL to identified investors as the Take‐up fee. AHCL is likely to gain from the deal through the put option fee, in case the put option is not exercised or the market price of SILK is higher than PkR 3.7 per share upon the completion of its tenor. SILK is currently trading at PkR 2.3 per share while AHCL is trading at PkR 26.0 per share at the stock market.