Bahria Town (Pvt) Ltd. has entered into exclusive negotiations to acquire controlling interest in Javedan Corporation Limited (JCL), the owners of Naya Nazimabad, stated a notice issued by the JCL to the Karachi Stock Exchange. If the deal goes through, say analysts, it will be the largest acquisition in the country’s real estate sector.
The consortium of sponsors/shareholders of JCL who have entered into the talks comprise Arif Habib Equity, Arif Habib Ltd, Aqeel Karim Dhedhi, Haji Ghani Usman, Shunaid Qureshi, Iqbal Usman, Mohammad Ayub Yunus Adhi and Summit Bank. Sources say the acquisition pertains to 75 percent of JCL stakes. The negotiations are said to represent Malik Riaz’s latest bid to enter Karachi’s real estate market.
JCL (formerly Javedan Cement Ltd) ceased its cement business in July 1, 2010 and the management has developed a business diversification strategy to utilize the company’s land for developing the Naya Nazimabad Housing Scheme.
Ahsan Mehanti of Arif Habib Corp said Bahria Town had expressed its intention to acquire JCL’S controlling interests; however, it was still negotiating and there had been no discussion regarding the share price so far.
Mehanti added that almost 20 percent of the JCL shares were with the public, free-float, while the shareholders mentioned above possessed over 75 percent shareholding in the company.
Sources said the sponsors of Naya Nazimabad were willing to sell their stakes if they were offered a satisfactory price, which Bahria Town had the capacity to pay.
They added that this might be a simple acquisition or merger as there were chances that JCL’s sponsors might get their shareholding in Bahria Town in lieu of their stakes in the JCL.
A decision will be made by Javedan Corporation in the shareholders’ meeting. If the majority shareholders with voting rights agreed to the proposal, the deal will proceed.
However, Colonel Khalil, who is associated with the Bahria Town, said that he was not aware of any such development. “I am not sure about this. I don’t think that Bahria Town would be interested in Naya Nazimabad or Javedan Corporation,” he added.
Another Bahria Town spokesman said on the condition of not being named this was an old matter as a deal could not be matured because they were demanding much money.
Source: The News
