KARACHI: The board of directors of BIPL Securities Limited (Company), in its meeting held here Tuesday, approved the draft scheme of arrangement subject to obtaining all necessary shareholders', creditors' and regulatory approvals and the sanction of the scheme by the High Court of Sindh along with fulfillment of related legal formalities.

In terms of the scheme, AKD Securities Limited shall be merged with and into the company, against which 457,834,171 ordinary shares of the company, having face value of Rs 10.00 each, shall be allotted and issued in aggregate by the company to the shareholder of AKDSL, as fully paid-up, on the basis of a swap ratio of 2.59 shares of the company for ever one share of AKDSL held be each of the shareholders of AKDSL, in accordance with the provisions of the scheme, material information sent to Pakistan Stock Exchange said.

The authorized capital of the company, upon sanction of the scheme, shall stand automatically increased from Rs 2 billion to Rs 7 billion, divided into 700 million shares of Rs 10.00 each by merger of the existing authorized share capital of AKDSL and the company and by virtue of an additional increase of Rs 2.5 billion to accommodate the swap ratio, it added.

Upon sanction of the scheme, the name of the surviving entity, ie, the company shall be changed to "AKD Securities Limited."

Copyright Business Recorder, 2021