The State Bank of Pakistan has revealed the details pertinent to the amalgamation of MCB Bank Ltd. and NIB Bank Ltd. in a notice.
With reference to the request forwarded by NIB and MCB to amalgamate NIB into MCB (the scheme) via sanctioning the request under the Scheme in terms of subsection 4 of Section 48 of the Banking Companies Ordinance , 1962 (BCO), both banks have forwarded the relevant documents for the purpose to the State Bank. It also mentioned that NIB and MCB have provided evidence that the procedure for obtaining sanction of the scheme by SBP under Section 48 of the BCO has been duly complied with. Also, ten shareholders holding 256,288,299 shares in NIB Bank Limited recorded their dissent on amalgamation of NIB Bank with and into MCB Bank. SBP, in accordance with Section 48(3) has determined the value of Rs 1.70 per share of NIB Bank.
Furthermore, on the nature of transaction SBP informed that the entire undertaking of NIB Bank Limited including all the properties, assets and liabilities and all the rights and obligations of NIB Bank Limited as at the “Effective Date” as provided in the Scheme shall be amalgamated into MCB Bank.
The scheme will be effective within 30 days hereof on 17th of July, 2017.