September 28, 2021 (MLN): The Board of Directors of BIPL Securities Limited has approved the draft Scheme of Arrangement as per which AKD Securities Ltd (AKDSL) shall be merged with and into the Company, against which 457,834,171 ordinary shares of the Company, having a face value of Rs10 each, shall be allotted and issued in aggregate by the Company to the shareholders of AKDSL.
These shares will be allotted as fully paid up, on the basis of a swap ratio of 2.59 shares of the Company for every 1 share of AKDSL held by each of the shareholders of AKDSL, in accordance with the provisions of the Scheme.
The authorized capital of the Company, upon sanction of the Scheme, shall stand automatically increased from Rs2bn to Rs7bn, divided into 700mn shares of Rs10 each by the merger of the existing authorized share capital of AKDSL and the Company and by virtue of an additional increase of Rs. 2.5bn to accommodate the swap ratio.
Upon sanction of the Scheme, the name of the surviving entity i.e. the Company shall be changed to “AKD Securities Ltd.”, company’s notice to Exchange said.
As per the notice, the aforesaid approval is subject to obtaining all necessary shareholders', creditors and regulatory approvals, and the sanction of the Scheme by the High Court of Sindh along with the fulfilment of related legal formalities.
