LAHORE: In a notification sent to the bourse on Wednesday, Muslim Commercial Bank (MCB) announced the demerger of ninety of its branches and merging them into MCB Islamic Bank Limited (MIB).
The notification read that in-line with the Board of Directors meeting on October 25th, it has decided to approve Scheme of Compromises, Arrangement and Reconstruction under Section 279 to 283 and 285 of the Companies Act 2017, whereby existing 90 branches of MCB will be demerged and amalgamated into MIB on the effective date against payment of cash consideration.
This deal is contingent to approval from MCB/MIBs shareholders and the State Bank of Pakistan (SBP), read the notification.
MCB stands among the topmost leading private-sector banks in Pakistan and in July completed its acquisition of NIB Bank Ltd, which included properties, assets, liabilities, rights, and obligations of it ended up being absorbed by the former.
At the time of filing this report, MCB’s shares were trading at Rs214.08, up Rs1.85 from its close on Tuesday. KSE-100 index was trading at 41,608.45 points, up 316.77 points from its opening on Wednesday morning.