Sindh Bank and Summit Bank shareholders have approved the merger of both entities. Sindh Cabinet will now consider the proposal in today’s meeting and approve the merger scheme.
To discuss and approve the merger plan an Extra-Ordinary General Meeting (EOGM) was held on Friday, August 31st. Summit Bank EOGM was held at Islamabad and Sindh Bank EOGM was held at Karachi.
The shareholders of both banks approved the merger scheme which was already approved by the Board of Directors of both banks. Both banks will be merged with a share swap ratio of 8.37:1 ratio. This means one share of Sindh Bank will be equal of 8.37 shares of Summit Bank.
Source in Summit Bank told ProPakistani that the merger scheme will be presented to Sindh Government and Sindh cabinet is expected to approve.
Sindh Chief Minister, Syed Murad Ali Shah, called a provincial cabinet meeting today at CM House Karachi. Merger Scheme and the new Chief Executive of Sindh Bank is on the meeting’s agenda.
“We are hoping the cabinet will approve this merger today. After the merger, Summit Bank will be dissolved and Sindh Bank will remain,” the source added.
After the approval of Sindh Cabinet, this merger scheme will be presented to the Supreme Court.
The amalgamation plan of Sindh Bank with Summit Bank faced a setback after Chief Justice of Pakistan Mian Saqib Nisar took a suo motu over alleged irregularities. Now the banks will submit a merger plan to SC for approval. If SC finds any discrepancies or violation of rules and regulations, the merger will not be allowed.
After the approval, this scheme will be submitted in State Bank of Pakistan for final approval.