KARACHI: In a notification sent to the bourse by Summit Bank Limited on Friday, it has been notified subject to approval by State Bank of Pakistan and other regulatory bodies its board of directors have given go-ahead to amalgamation of Summit Bank with and into Sindh Bank via a share swap transaction.
A copy of the notification is shared below:
In the 83rd meeting of the board of directors of Summit Bank on October 12, 2017, the board approved the revision to the swap ratio from 1:3.85 to 1:4.17, this means that 1 (one) share of Sindh Bank Limited will be issued for every 4.17 ordinary shares of Summit Bank Limited.
Furthermore, the notification informed that an extraordinary board meeting has been convened on November 7, 2017.
Profit had reported back in August that Summit Bank’s board of directors had approved the merger with Sindh Bank via a share swap transaction.
According to the proposed merger, the combined banks would have a market capitalization of over Rs30b and will have 500 branches spread across Pakistan.
Summit Bank had previously been struggling with hard capital requirements under the Basel III regulations.
SBP had eased the requirements of Capital Adequacy Ratio (CAR) and leverage ratio for Summit Bank and given it time till June 29th to improve its CAR. The bank had reported a profit after tax for Jan-March of Rs84.78m compared to a loss of Rs649.33m in the same period last year (SPLY).
At the time of filing this report, Summit Banks’s shares were trading at Rs2.70, down Rs0.20 from its close on Thursday. KSE-100 index was trading at 39,786.35 points, down 451.18 points from its opening on Friday.
