The board of directors of Samba Bank has decided to issue 556.521 million rights shares of Rs 10 at Rs 5.75 per share with a discount of Rs 4.25 per share subject to approval of Securities and Exchange Commission of Pakistan (SECP) and shareholders of the bank.
The board of the bank decided to issue 6.34 right shares for every 10 shares held at Rs 5.75 per share ie at a discount of Rs 4.25 per share. According to a notice sent to Karachi Stock Exchange on Tuesday, the bank is operating as a banking company in Pakistan and its authorised capital is Rs 15 billion, divided into 1,500 million shares, having a face value of Rs 10 per share.
The total paid up and issued share capital of the bank is Rs 8.769,516,750, divided into 876,951,675 ordinary shares of Rs 10 each. In view of the accumulated losses sustained by the bank as reflected in the financial statements dated September 30, 2009, the management of the bank recommended to the board of directors of the bank to consider issuance of rights shares of the bank under Section 84 and 86 of the Companies Ordinance, 1984, respectively at Rs 5.75 per share at a discount of Rs 4.25 per share as the current book value of the shares of the bank does not reflect the par value of Rs 10 per share.
The bank has received approval of the State Bank of Pakistan, pursuant to proceed with the issue of shares at Rs 5.75 per share. In this respect the Extraordinary General Meeting of the bank is proposed to be held on Wednesday, December 30, 2009. The share transfer book of the bank will remain closed from December 24, 2009 to December 30, 2009 (both days inclusive).
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