The HBL Asset Management, a wholly-owned subsidiary of Habib Bank Limited (HBL), is all set to acquire the PICIC Asset Management Company. Once materialised, the Rs 4.1 billion deal would see the HBL Asset Management joining the ranks of the country's largest asset management companies (AMCs). The asset management company, according to a notice HBL sent to the country's stock exchanges in Karachi, Islamabad and Lahore Tuesday, will buy 100 percent shareholdings of PICIC from its owners at NIB Bank Limited.
The NIB Bank has accepted the HBL's offer. "The Board of Directors of NIB Bank Limited in its meeting held today... has given its approval for the sale of 100 percent shareholding in PICIC Asset Management Company Limited," the NIB Bank informed the front regulators at country's three bourses on Tuesday. The transaction, however, is subject to the approval of all regulatory bodies, including Securities and Exchange Commission of Pakistan, and the singing of a Shares Sale Agreement between the two companies.
HBL officials told Business Recorder that the current assets under management (AUM) of the HBL Asset stood approximately at Rs 22 billion compared to PICIC Asset's Rs 24 billion. The transaction, when completed, would make the HBL Asset Management one of the country's largest AMCs in terms of monetary asset management. Other big players of over Rs 481 billion assets management industry are: National Investment Trust, MCB-Arif Habib Savings and Investments, Al Meezan Investment Management, NBP Fullerton Asset Management and UBL Fund Managers.
With its increased AUM of Rs 46 billion post merger of the two companies, the HBL Asset's portfolio in the market would stand somewhere at about 10 percent. The current business of the acquirer comprises at least nine funds of equity, money market, income, balanced, capital-protected fund and voluntary pension nature. On the other hand, PICIC Asset manages six open-end, two closed-end, two stock and income and money market funds.