The Board of Directors (BoD) of Summit Bank Limited has approved the revised swap ratio in respect of the proposed amalgamation into Sindh Bank Limited. A stock notice issued by the company secretary Summit Bank on Monday said that in the 89th meeting of the board of directors of Summit Bank Limited approved and recommended the revision in swap ratio from 4.17 to 8.37 in respect of amalgamation of the Summit Bank with and into Sindh Bank Limited.
As per revised ratio, one (1) ordinary share of Sindh Bank Limited is proposed to be issued for every 8.37 ordinary shares of the bank as a consequence of this proposed amalgamation.
However, according to company announcement, the revised ratio is subject to all applicable regulatory approvals and compliances including the approval of the State Bank of Pakistan (SBP) and the permission of Supreme Court of Pakistan, approval of the stakeholders of the banks in a general meeting.
The board has also approved convening of an extraordinary General Meeting of the shareholders of the bank on August 31, 2018 for the approval of the scheme of amalgamation of the bank with and into Sindh Bank Limited in compliance of the requirements of section 48 of the Banking Companies Ordinance 1992.
The Summit Bank board in its meeting held on August 3, 2018 also ratified the appointment of Ahsan Raza Durrani as Acting President and Chief Executive Officer of the of the bank in place of Muhammad Zuhir Esmail. Durrani''s appointment is also subject to necessary regulatory approvals.
Muhammad Zuhir Esmail is retiring from the office of president and CEO on attaining the age of 70 years on August 7, 2018.
It may be mentioned here that Summit Bank was facing some financial issues and was unable to meet the minimum capital requirement of SBP. While, Sindh Bank''s business was limited to some sectors, therefore sponsors of both banks decided for an amalgamation scheme, after which all branches of Summit Bank will be converted into Sindh Bank and the name of new bank will remain Sindh Bank. With this proposed merger, the number of Sindh Bank branches will surge to 450.