BMA Capital, Pakistan’s premier investment bank, has been rated the best performing Pakistani & South Asian investment bank by Bloomberg Financial News Agency. The bank advised on deals worth $2.58 billion in June 2005.
Bloomberg ranked BMA as number two overall, behind JP Morgan, by value of the M&A deals it advised. No other Pakistani firm features in Bloomberg’s list of top 20 firms. The ranking comes after the firm successfully advised Etisalat, the Middle East telecoms giant, on its acquisition of Pakistani government telecoms provider PTCL.
Upon finalisation of the deal, PTCL’s privatisation will generate US$2.598 billion for the Government of Pakistan, making it the largest privatisation in Pakistan’s history. It is also the largest Foreign Direct Investment (FDI) inflow ever in Pakistan and the largest telecom M&A deal in Asia since July 2003.
BMA, which has lead managed several landmark transactions in Pakistan, now heads the league table for privatisation advisory in Pakistan, having advised on nearly 70% of all privatisations by value in the nation’s history.
The deal represents a watershed moment in Pakistan’s economic progress and a major vote of confidence in the Government’s privatisation program by the international investment community. Etisalat agreed to pay US$ 1.96 per share for a 26% strategic stake with management control of PTCL. BMA Capital’s CEO, Mr. Farrukh H. Khan, said on the occasion “We are proud to have been involved in one of the most important transactions in the nation’s history”.
The transaction underscores BMA Capital’s position as the leading investment banking firm in Pakistan, and one of the first corporate members of the Karachi Stock Exchange. BMA recently concluded a 50/50 joint venture agreement with Abraaj Capital, the largest private equity firm of the Middle East. BMA operates in six core areas of business including Capital Markets, Investment Banking, Research, Asset Management, Private Equity, and Retail Brokerage.
