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SBP approves NDLC-IFIC Bank amalgamation

KARACHI (September 26 2003): The State Bank (SBP) has approved the amalgamation of National Development Leasing Corp (NDLC) and International Finance Investment and Commerce (IFIC) into NDLC-IFIC Bank Ltd.

According to the notice issued by the Karachi Stock Exchange (KSE), NDLC have received sanction orders from the SBP approving the scheme of amalgamation through with the NDLC and the Pakistan Operation of the IFIC.

According to the sanction order, the amalgamation scheme shall be effective within 30 days of the Sanction Order dated 17 September 2003.

Complying the above order now the NDLC have to complete all the formalities for the amalgamation by 16the October 2003.

The sanction follows the 22 May 2003 extraordinary general meeting of NDLC in which the company approved the scheme of amalgamation.

According to the scheme of amalgamation approved then the current shareholders of the NDLC would get 1.1764 shares of NDLC-IFIC Bank Ltd.

NDLC shall, without winding up, stand dissolved from the date on which all the ordinary shares of NDLC-IFIC Bank be allotted to the share holders of NDLC.

On the allotment date, NDLC shall stand de-listed from the concerned stock exchanges in Pakistan and NDLC-IFIC Bank shall stand listed on such stock exchanges accordingly without any further act or deed and without having go through a public offering.

The paid-up capital of the new entity would be Rs 1,110 million (111 million shares of Rs 10 each).

The NDLC shareholders proportion is 80 percent or 88.20 million shares and IFIC shareholders 20 percent or 22.20 million shares.

During the first nine months of the fiscal year 2002-03, the company has posted a 62 percent in the bottom line.

The profit after tax for the nine months ended March 31, 2003 stands at Rs 35.61 million against Rs 22.28 million in the corresponding period last year.

The scrip of NDLC gained 70 paisa or 3.78 percent Thursday to 19.20 rupees where 237,000 shares changed hands.

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