KARACHI: Shareholders of Orix Investment Bank and Orix Leasing Pakistan gave approval for merger of the two companies by majority votes in their separate meetings held on Monday. The two companies announced in separate statements that they had been evaluating the pros and cons of an amalgamation of the investment bank with and into the leasing company. At an extraordinary general meeting of Orix Investment Bank, 99.36 percent of shareholders agreed to the scheme of amalgamation. Similarly, 99.98 percent of shareholders of Orix Leasing Pakistan agreed to the scheme of amalgamation at their extraordinary general meeting. Votes of a majority in number representing two-thirds in value of the shareholders were required. Orix Investment Bank incurred a loss of Rs 250.197 million during the first nine months of current fiscal year. Orix Leasing had been looking at various options to solve the financial difficulties being faced by its associate Orix Investment Bank Pakistan. On March 31, 2009, its board of directors decided to evaluate the prospects of a possible amalgamation of ORIX Investment Bank Pakistan into ORIX Leasing Pakistan. The boards of directors of Orix Investment Bank and Orix Leasing Pakistan then recommended to their respective shareholders a swap ratio of 43: 1 whereby one ordinary share in OLP was to be allotted for 43 ordinary shares in OIB. This swap ratio was originally recommended by Anjum Asim Shahid Rahman Chartered Accountants, engaged for calculating the swap ratio by the two companies. Three valuation approaches were considered for calculating the swap ratio between OLP and OIB: net asset value approach; price to book multiple approach; and market value approach. Finally, a weighted average of these valuation approaches was used. The weights assigned for the final calculation of swap ratio was as follows: 60 percent to net asset value approach, 20 percent to price to book multiple approach and 20 percent to market value approach. According to its Jan-Mar \'09 report, Orix Leasing recorded a loss before tax of Rs 125.8 million for the nine months period ended March 31, 2009, compared with a profit before tax of Rs. 284.5 million in the same period last year. Third quarter loss amounted to Rs 104.9 million against a profit of Rs. 57.6 million earned in the same quarter of 2008. This was the first loss in company\'s 23-year history. OIB closed at Rs 0.52 per share on Monday at the Karachi Stock Exchange after rising five paisas while OLP closed at Rs 8.08 per share after gaining 19 paisas.