October 15, 2003	Wednesday	Sha'aban 18, 1424

KARACHI, Oct 14: NDLC-IFIC Bank Limited that was created as a result of amalgamation of National Development Leasing Corporation Limited (NDLC) with the Bangladeshi bank — International Finance Investment and Commerce Bank Limited (IFICL) — would be capitalized at Rs1.2 billion.

Following the approval of the scheme of amalgamation by the shareholders in an extraordinary general meeting on May 22 and subsequent sanction by the State Bank of Pakistan, NDLC-IFIC Bank Limited (NIB) has begun operations from October 3.

According to the SBP sanction order, the bank was required to complete all formalities for amalgamation latest by October 16.

Paid-up capital of NIB is Rs1.230 million divided into 122.994 million shares of Rs10 each. For the purpose of implementation of scheme of amalgamation, ordinary shares of NIB of the face value of Rs10 each would be issued to shareholders in NDLC in exchange for a share in NDLC of the face value of Rs5 each at the rate of 130.25 shares of NIB of nominal value of Rs10 per share for every 100 shares of NDLC of nominal value of Rs5 each.

As was generally expected, the swap ratio had been revised from previously proposed ratio of 117.64 shares in NIB for 100 shares of NDLC, owing to the rise in NDLC stock price from Rs8 in May when the talks of merger first began, to Rs18.50 currently.

According to industry sources, major shareholders in NIB included MIMA Group, Mohammad Shafi Group, IFIC Bangladesh and Arif Habib Group. In compliance with the regulation regarding disclosure of substantial acquisition, Arif Habib Group had announced last week that the Group held 24.18 per cent shares in NDLC (Arif Habib Securities 12.0 million shares and Mr Arif Habib 6.2 million shares). All of that would translate into the Group’s holding of 20 per cent shares in NIB.

NIB was said to have inherited two branches of IFIC and eight branches of NDLC across the country. Khawaja Iqbal Hassan and Sultan Allana with combined Citibank working experience of 22 years were identified as the key professionals in NIB.