CITIC Securities Co. Ltd. unit CLSA JV Holdings Ltd. and Bank Alfalah Ltd. have forged a strategic partnership in Pakistan through a joint venture.
Under the partnership, CLSA JV will acquire a 24.9% stake in Bank Alfalah unit Alfalah Securities (Pvt.) Ltd., while individual investors M. Aliuddin Ansari and Atif Khan, CEO of Alfalah Securities, will acquire a combined 12.6% stake, according to an Aug. 30 release.
The transaction is expected to complete by November.
Following the completion of the deal, Alfalah Securities will be renamed Alfalah CLSA Securities (Pvt.) Ltd., and will offer equity broking, research and investment banking services to Pakistan-based clients. CLSA JV will also distribute Alfalah CLSA research to its global clients.
Ansari is expected to become the chairman of Alfalah CLSA.
Bank Alfalah had said in its first-half earnings released Aug. 27 that its board authorized Alfalah Securities to issue rights shares. The lender plans to renounce its entitlement of the the rights shares when they are issued in favor of CLSA JV, Ansari and Khan.