NIB Bank has been officially delisted from Pakistan Stock Exchange (PSX) along with its shares owned by shareholders.
The delisting of the NIB Bank as the public limited company was part of its merger with MCB Bank by the way of share swap agreement.
Accordingly, more than 72 million shares of the NIB Bank earlier owned by shareholders at PSX have been transferred to their owners as shares of MCB Bank.
In this connection, the management of the MCB Bank has deposited a mandatory fee of Rs 0.734 million in the stock exchange as part of the listing of the new shares with the merger of a bank.
After shares swap, the overall shares of the MCB Bank have increased to 1.185 billion from 1.113 billion at the price of Rs 10. On the other hand, its paid-up capital also increased to Rs 11.85 billion from Rs 11.13 billion accordingly.
Moreover, an amount of Rs 366 million was paid to shareholders who refused to obtain shares of MCB Bank against shares of NIB Bank.
NIB Bank has already been made dysfunctional with its name including its business license officially revoked by the State Bank of Pakistan, a couple of weeks ago.
Accordingly, the assets, deposits, liabilities, human resources and branches of the NIB Bank will be transferred to the MCB Bank for further consolidation which will likely to be completed in the next 60 days.
According to official information, a number of designated NIB Bank branches will remain operative so that they can continue providing services to its customers whereas a majority of the branches will be transformed into the branches of MCB through its rebranding.
Besides, no changes will be made to the banking services of former NIB customers who will be able to conduct their banking transactions as usual.
This merger has taken place under a share swap arrangement in accordance with the Scheme of Amalgamation as approved by State Bank of Pakistan on June 13, 2017, without involving any foreign exchange transaction.