SBP – The State Bank of Pakistan has given endorsement for the merger of NIB Bank Limited with and into MCB Bank Limited.
State Bank with its order mentioned on June 13th, 2017, has authorized the Scheme of Amalgamation of NIB Bank with and into MCB Bank in accordance with sub-section (4) of Section 48 of the Banking Ordinance, 1962. This merger is subject to the agreement of the provisions of the given laws of these banks.
The Scheme of Amalgamation will become operative in thirty (30) days from the SBP sanction given by the NIB and MCB. When the effective date comes, all properties, assets, liabilities, rights and obligations of NIB will be mentioned as amalgamated and join MCB permanently. After this, NIB Bank will be merged with and into MCB Bank. Both MCB and NIB will start working for technical migration of data of client.
The merger of the two Banks will take happen by a share swap arrangement whereby one share of MCB Bank will be issued for each 140.043 shares of NIB Bank. The nonconforming shareholders of NIB Bank shall be permitted to receive the value of their shares at the rate of Rs. 1.70 per NIB share.
The amalgamation of the two Banks also got the endorsement of the Competition Commission of Pakistan on June 2nd, 2017 and other necessary corporate and regulatory authorizations and consents in this regard.
Hassan & Hassan (Advocates) (Legal Advisors) and PWC Pakistan (Financial and Tax Advisors) handled the legal and financial/tax affairs of the merger for MCB Bank.
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