The Karachi Stock Exchange and the Lahore Stock Exchange on Tuesday decided to de-list Pakistan Industrial Credit and Investment Corporation Limited (Picic) and Picic Commercial Bank Limited from the Ready Board Quotation of KSE and LSE from January 2, 2008.
In the separate notifications issued to brokerage houses said both the KSE and the LSE had taken this decision following merger of Picic Commercial Bank and Pakistan Industrial Credit and Investment Corporation Limited with and into NIB Bank. The shareholders of PCBL and Picic in their respective extraordinary general meetings had approved the scheme of arrangement for merger.
The State Bank of Pakistan (SBP) in its order dated December 31, 2007, also approved the said scheme of arrangement. The SBP has revised the swap ratio under which NIB Bank Ltd shall issue 2.27 shares for every one share of Picic Bank and 3.18 shares for every one share of Picic.
The SBP has also determined the values as Rs 67.94, Rs 39.72 and Rs 20.47 per share for Picic, PCBL and NIB Bank, respectively, (average market price for the last six months). Dissenting shareholders are entitled to claim from the respective institution such value in respect of the shares held by them in such institution or swap their respective shares in accordance with the given swap ratio.
Meanwhile, the KSE, in its notification, said that Picic and Picic Commercial Bank Limited will be deleted from the KSE-100 index and Cherat Cement Company Limited and Gatron (Industries) Limited will be included in the index with effect from January 2, 2008 on the basis of "Capitalisation Rule" based on the market prices of last re-composition in the KSE-100 index carried out by the exchange on August 31, 2007.
On the other hand, Picic is also included in the KSE-30 index. On account of its merger with and into NIB Bank Limited and its subsequent de-listing from the Exchange, it was required to replace the company with the next qualifying company on the basis of last re-composition carried out by the Exchange on June 30, 2007. Accordingly, Azgard Nine Limited has qualified for the inclusion in the KSE-30 index in place of Picic which will be implemented from January 2, 2008.