Daily The Business

Management all set for early completion of transaction

Summit Bank’s merger with Sindh Bank

By M J Hayat

LAHORE: Summit Bank Limited is making all-out efforts for early completion of the proposed merger and amalgamation transaction of Summit Bank Limited with the Sindh Bank Limited, Daily The Business has learnt reliably.
Official sources inform Wednesday that the management of Summit Bank is making necessary efforts for early completion of the proposed merger and amalgamation transaction of Summit Bank Limited with the Sindh Bank Limited.
In this respect, it was said, the field work by the due diligence experts and teams of the bank for the fresh and updated due diligence of Sindh Bank Limited based on the audited statements of Sindh Bank Limited as of December 31, 2017 has been completed.
A similar fresh and updated due diligence of Submit Bank Limited has been carried out by the due diligence experts of Sindh Bank Limited based on the audited financial statements of the Summit Limited as of December 31, 2017, the official source added.
Accordingly, the process for arriving at the proposed revised shares swap ratio, revised scheme of amalgamation has been initiated, the management explained, adding that after that process is completed and proposed revised shares swap ratio and revised scheme of amalgamation is approved by the board of directors of the bank, the same will be submitted to the share holders of the bank for their approval subject to all applicable regulatory approvals and compliances including the approval of the SBP and permission of the Supreme Court of Pakistan.
All the applicable approve and compliances will also be required to be carried out by Sindh Bank Limited, it was informed.
It was said that the Bank has also put in place a contingent capital restoration plan, whereby Sponsor, Suroor Investment Limited of the Bank has given a firm commitment to the SBP to provide required amount of capital funds to the Bank on or before December, 31, 2018 for enabling the Bank to meet the applicable regulatory capital requirements of MCR, CAR and LR in case of the board of directors of the bank decide not to pursue the proposed merger option.

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