Askari Securities Limited, a subsidiary of Askari Bank Limited, will get merged with Foundation Securities Limited, a subsidiary of Fauji Foundation.
According to stock filing, the Board of Directors of Askari Bank Limited, Askari Securities Limited, and Foundation Securities Pvt Limited have resolved for the amalgamation of Askari Securities Limited into Foundation Securities Pvt Limited, subject to necessary regulatory approvals and endorsements by the stakeholders.
By the effect of the amalgamation, the complete undertaking of Askari Securities Limited will be transferred and come to vest into Foundation Securities Pvt Limited together with all properties, assets, liabilities, and obligations of every description.
Also, the shares of Askari Securities Limited will be canceled and for each share held in Askari Securities Limited by Askari Securities Limited as a holder of 100% of shares thereof, 27,140,000 shares of Foundation Securities Limited will be issued to Askari Securities Limited i.e. for every one (1) ordinary share of Askari Securities Limited of Rs. 10 held by Askari Securities Limited, 1.18 ordinary shares of Foundation Securities Limited of Rs. 10 each will be allotted to Askari Securities Limited. Askari Securities Limited will then dissolve without winding up, the notice said.
The merger of the two securities companies will enhance the performance of the merged company which will benefit the associated companies of the group and main sponsor, Fauji Foundation Limited.
