KASB RAISES FOREIGN EQUITY FOR NEXT PHASE OF GROWTH

Karachi, 05 September 2007: KASB Capital Limited, the local partner of Merrill Lynch and the asset management, brokerage and investment banking arm of the KASB Group, is pleased to announce that it has successfully raised PKR 2 billion (US$ 33 million) through a private placement of equity to GLG Emerging Markets Special Situations Fund, Tikehau Asia and Liberty Harbor. Under the terms of the placement the above mentioned investors will collectively take a 35% stake in KASB Capital Limited.

Under the new Group structure KASB Capital, which has been granted a license by the SECP to perform Investment Finance Services (IFS), becomes the holding company for KASB Securities Limited and KASB Funds Limited. KASB Capital, which also includes investment banking services, has also launched a new Principal Investments division which will allow it to use its own capital to invest in businesses.

“Through this transaction, three highly reputed global investment funds have given KASB Capital a value of US$ 100m", said Farid Masood, Managing Director, KASB Investment Banking, "We plan to use the additional capital to further strengthen our businesses and invest in new growth opportunities. With the backing of our new investors and the access to funds, we will firmly establish ourselves as the financial services firm of choice".

GLG Emerging Markets Special Situations Fund is investment managed by GLG Partners LP (“GLG”), an independent asset manager, established in England and authorised and regulated by the Financial Services Authority (“FSA”). Originally founded in 1995 as a division of Lehman Brothers, GLG was restructured as a separate legal entity in 2000. Today, GLG manages approximately 40 Funds. These Funds represent a range of different alternative and traditional long-only investment strategies. GLG employs approximately 300 professionals and manages assets of more than $20 billion.

Liberty Harbor is an investment vehicle focusing on fundamentally-driven corporate investment opportunities across capital structures. Liberty Harbor is part of Goldman Sachs Asset Management (GSAM).

Tikehau Group (France) is investing in KASB Capital through Tikehau Asia. Tikehau Group was founded in 2004. The group’s main activity is the structuring of financial operations and investments in various industries.

KASB Capital was advised by Merrill Lynch and KASB Investment Banking.

For additional information, contact:

Farid Masood
Managing Director
KASB Investment Banking
5th Floor, Trade Center
I.I. Chundrigar Road
Karachi 74200
Ph. No. 2631770 / (Cell) 0300-824-4993

The KASB Group, established by Khadim Ali Shah Bukhari in 1958, has a long-standing tradition of excellence in financial services in Pakistan, known primarily for investment banking, research/trading and asset management. In 1993, KASB became the local partner for the international investment banking firm, Merrill Lynch. Recently, Merrill Lynch acquired an equity stake in KASB Funds. In 2002, KASB added a commercial bank to the Group; today, KASB Bank is fast developing into a leading niche franchise. Though financial service continues to remain its core focus, the group has diversified its interest with investments in real estate, technology and oil and gas. Its continued success and growth reflects its innovative approach to business, and a commitment to customers and community.

This release was published on openPR.