MCB, NIB merger effective from July 7

LAHORE: The merger of NIB Bank Ltd into MCB Bank Ltd came into effect on 7 July and all properties, assets, liabilities, rights and obligations of NIB now stand amalgamated and vest permanently in MCB, a statement said on Monday. 

“For now, no changes will be made to the banking services of former NIB customers who will be able to conduct their banking transactions as usual,” said the statement.

The merger took place under a share swap arrangement in accordance with the scheme of amalgamation as approved by the State Bank of Pakistan on June 13, without involving any foreign exchange transaction.

MCB earlier said its shareholders approved the swap ratio of one new ordinary share of MCB Bank for every 140.043 shares of NIB for the scheme of amalgamation. 

As a consequence of the approved amalgamation, 73,569,197 ordinary shares of MCB would be issued in favour of the shareholders of the NIB Bank.

“Once the full integration of both banks is complete, the merger will provide additional synergies, banking services and added convenience to customers of both banks,” the statement added.

“Former NIB customers will gain direct access to MCB’s extensive network of branches and ATMs (auto teller machines) alongside enhanced portfolio of products and services.

Additionally, they will also gain access to banking services in several new geographical segments.” Fullerton Fund Management Company Ltd, a subsidiary of Singaporean state investor Temasek Holdings, held the majority stake in NIB Bank. It initiated divestment process back in 2011.

“MCB Bank already enjoys the confidence of foreign investors, including Malaysia based Maybank, and with this strategic merger, MCB Bank is honoured to welcome Fullerton Financial Holdings (International) of Singapore as another significant international shareholder of the bank,” added the statement.