Green light: Cabinet approves merger of Summit Bank with Sindh Bank

Latter would be the surviving entity; transaction swap ratio to be 4.17:1

KARACHI: The Sindh Cabinet in its meeting held on Saturday approved the merger of Summit Bank with Sindh Bank. The meeting was chaired by Sindh Chief Minister Murad Ali Shah.

He told the cabinet that Sindh Bank was established on the occasion of death anniversary of Shaheed Mohtarma Benazir Bhutto in 2011 by establishing its first branch at Naudero in which former president Asif Ali Zardari opened the inaugural account. The bank has established 300 branches within its first three years, he said. Summit bank is also a newly established bank and its merger with Sindh bank would boost the business further.



The meeting was told that the board of Sindh Bank Ltd has already approved merger of Sindh Bank Ltd into Summit Bank Ltd for which a swap ratio of 1:4.17 has been determined where one ordinary share of Sindh Bank is approved to be issued for every 4.17 ordinary shares of Summit Bank.

Talking about the structure of the transaction, the chief minister said that Summit bank would merge into Sindh Bank which would be the surviving entity. Sindh Bank would have majority representation on the board of directors and dominant shareholding would continue to be held by Sindh government.

Sindh Bank, as the surviving entity, would apply for the combined shares to be listed on the Pakistan Stock Exchange through technical listing. The cabinet unanimously approved the merger of Summit Bank into Sindh Bank.

Published in The Express Tribune, December 31^st, 2017.

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