MCB, NIB to seek shareholders’ approval for merger

KARACHI: The MCB Bank Limited and NIB Bank have scheduled extraordinary general meeting (EOGM) on January 23 to seek approval of their respective shareholders for the merger of NIB Bank into MCB Bank, notices issued to the bourse suggest.

MCB has obtained the approval of its board of directors to proceed with the amalgamation scheme, as a result of which the entire undertaking of NIB Bank, including all properties, assets, receivables, liabilities and all other rights and obligations would  stand amalgamated and merged with and into MCB Bank.

The amalgamation would be effective by way of a scheme of amalgamation in accordance with the provisions of Section 48 of the Banking Companies Ordinance, 1962, which is required to be approved by the shareholders of the MCB Bank through two-thirds majority votes, present either in person or by proxy at the EOGM and sanctioned by the State Bank of Pakistan.

Pursuant to the scheme of amalgamation, every person who stands registered as the holder of any ordinary share of NIB Bank will be entitled to receive one new ordinary share of the MCB Bank for every 140.043 ordinary shares of NIB Bank held by the shareholders of the bank.