SBP grants approval for NIB Bank’s merger with MCB

Deal taking place through a share swap arrangement

LAHORE: The State Bank of Pakistan (SBP) has granted approval for the merger/amalgamation of NIB Bank Limited with MCB Bank Limited.

The merger/amalgamation of the two banks is taking place through a share swap arrangement whereby one share of MCB Bank will be issued for every 140.043 shares of NIB Bank. The shareholders of NIB Bank will be entitled to receive the value of their shares at the rate of Rs1.70 per NIB share.

The deal between the two banks also received the approval of the Competition Commission of Pakistan on June 2, 2017 and other required corporate and regulatory authorisations and consents have also been issued.

The SBP has sanctioned the Scheme of Amalgamation of NIB Bank with and into MCB Bank in terms of sub-section (4) of Section 48 of the Banking Companies Ordinance, 1962, through its order dated 13th June 2017.

This approval is subject to the compliance of the provisions of the applicable laws by both the banks. The Scheme of Amalgamation will become effective within 30 days from the SBP sanction on a date to be notified by the two banks to SBP (the “Effective Date”).

On the effective date, all properties, assets, liabilities, rights and obligations of NIB Bank will stand amalgamated and vest permanently in MCB Bank and, as a consequence, NIB Bank shall be amalgamated with and into MCB Bank.

NIB Bank will cease to exist on the effective date. Both banks will then start working towards technical migration of client data.

Published in The Express Tribune, June 15^th, 2017.

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