Brokerage and investment arm: Dawood Hercules Group sells Elixir Securities

Move in line with company’s strategy to focus more on energy and agriculture

KARACHI: One of Pakistan’s biggest conglomerates, Dawood Hercules Group, has exited the securities business by selling its brokerage and investment banking arm to a newly registered company at an undisclosed price, official sources told The Express Tribune on Tuesday.

Elixir Securities, a Karachi-based brokerage and corporate finance entity, was acquired by Elixir Capital on May 4. Neither party was willing to divulge the value of the transaction, citing its status of a privately held company.

According to Junaid Iqbal, who led Elixir Securities for the last three and a half years as CEO, the exit is in line with the Dawood Hercules Group’s strategy to focus its business activities within and around the energy and agriculture verticals.

Patek Private Limited was the holding company that owned 100% shares of Elixir Securities. An affiliate of the Dawood Hercules Group, Patek sold its entire shareholding a few weeks ago to Elixir Capital, a new company registered last month in Karachi.

But the financial close of the transaction took place on Monday and the company has now been handed over to the new management, according to its former CEO.

Iqbal restarted the corporate finance business at Elixir Securities in 2012 and managed big transactions, including the government’s sale of its remaining stakes in Habib Bank, United Bank and Allied Bank.

The value of these transactions was well over $1.5 billion, which is substantial in view of the overall size of the investment banking and corporate finance business in Pakistan.

While most staff members of Elixir Securities are expected to continue working for Elixir Capital, Iqbal has ceased to be the CEO of the brokerage house. He will now be leading e2e Supply Chain Management, an up-and-coming logistics company, as CEO and equity partner.

The main sponsor of Elixir Capital is Fawaz Valiaani, who served as the executive director and chief operating officer at BMA Capital Management until February.

When contacted by The Express Tribune, Valiaani refused to reveal his exact shareholding in Elixir Capital. He did not state the names of the minority shareholders of Elixir Capital, saying the company would issue a press release on Wednesday.

Published in The Express Tribune, May 6^th,  2015.

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