NIB Bank’s amalgamation with MCB likely tomorrow

ISLAMABAD: The NIB Bank is likely to announce its amalgamation with Muslim Commercial Bank (MCB) tomorrow (Wednesday).

Documents available with The News reveal that a meeting of the Board of Directors of NIB Bank has been called on December 7 to discuss and consider the proposed amalgamation of the bank with MCB on December 7.

The official letter issued by NIB Bank management to the Pakistan Stock Exchange (PSE) on December 2 reads, “This is to inform you that an emergent meeting of the Board of Directors of NIB Bank Limited is scheduled for Wednesday, the 7th December 2016 at 10.00 am at Karachi to discuss and consider the proposed amalgamation of the Bank with and into MCB Bank Limited under section 48 of the Banking Companies Ordinance, 1962 along with other agenda items, if any. The company has declared the 'Closed Period' from 3rd December 2016 to 7th December 2016 (both days inclusive) as required under clause 5.19.15 of the PSX Rule Book (Code of Corporate Governance). Accordingly, no Director, CEO and Employee of the Bank shall, directly and / or indirectly, deal in the shares of the Company in any manner during the Closed Period. You may please inform the TRE Certificate Holders of the Exchange accordingly.”

Reportedly, the due diligence for MCB’s acquisition of NIB Bank was completed in August this year and it was expected that within 15 to 20 days the board of directors and shareholders of both the banks would give approval of the amalgamation.

For NIB Bank, the possible merger could be a great chance to get out of losses. The bank was struggling to be profitable, and it posted profit after tax of Rs2.617 billion in 2015 as against loss plus tax worth Rs508 million in the year 2014.