MyBank, Summit Bank: Shareholders approve merger

Summit bank will acquire 59% stake in My Bank.

KARACHI: Shareholders of MyBank Limited and Summit Bank Limited have approved the merger of the two entities, clearing the way for the amalgamation of MyBank into Summit Bank.

According to notices published by the Karachi Stock Exchange, shareholders of both banks held separate meetings to give the green signal to the deal.

The swap ratio for the merger has been set at 0.8 share of Summit Bank for each share of MyBank. Summit Bank will acquire 314.701 million shares of MyBank, taking a 59.34 per cent stake at Rs8 per share, as well as management control of the bank.

Once the amalgamation has been concluded and all relevant approvals from the State Bank of Pakistan (SBP) are received, MyBank will be merged into Summit Bank. The merger will make MyBank the second institution to be amalgamated into Summit – formerly Arif Habib Bank –after Atlas Bank Limited.

On December 31, 2010, the SBP cancelled the banking licence of Atlas Bank and officially de-scheduled it into Summit Bank. The acquisitions were executed by Suroor Investments with Hussain Lawai, current president of Summit Bank, at the helm.

Published in The Express Tribune, January 25^th, 2011.