January 11, 2022 (MLN): The board of directors of Askari Bank Limited (AKBL), Askari Securities Limited (ASL) and Foundation Securities Pvt Limited (FSL) have resolved for the amalgamation of ASL with and into FSL, subject to necessary regulatory and Shareholders' approvals, a notice issued to bourse showed today.
Last year in October, AKBL had consented to the Expression of Interest (EOI) received by Askari Securities Limited (ASL) from Foundation Securities (Pvt) Limited (FSL) to explore the possibility of merger and amalgamation of ASL with and into FSL.
ASL, a securities brokerage company, is a wholly owned subsidiary of AKBL which is a public listed company with its shares listed on PSX. Whereas, FSL, also a securities brokerage, is majority owned by Fauji Foundation (FF).
By the effect of the amalgamation, the complete undertaking of ASL will be transferred and come to vest into FSL together with all properties, assets, liabilities and obligations of every description.
Also, the shares of ASL will be cancelled and for each share held in ASL by AKBL as a holder of 100% of shares thereof, twenty-seven million one hundred and forty thousand (27,140,000) shares of FSL will be issued to AKBL i.e. for every one (1) ordinary share of ASL of Pakistani Rupees Ten (PKR 10/-) held by AKBL, one point one eight (1.18) ordinary shares of FSL of Pakistani Rupees Ten (PKR 10/-) each will be allotted to AKBL. ASL will then dissolve without winding up, the notice said.
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