“NIB Bank Ltd. is entering into a merger with MCB Bank through a share swap agreement.”
The Board and major shareholders of NIB Bank took this unanimous decision to cull the Bank’s significant losses among other reasons.
The scheme of amalgamation currently awaits shareholder and regulatory approval, the prior of which is being sought at an Extraordinary General Meeting of the shareholders.
A former employee of NIB Bank, Mr. Khawaja Iqbal, has chosen to disrupt the proceedings by obtaining a legal injunction to prevent the EOGM of NIB Bank from taking place.
The Singapore government owned Temasek Holdings, the main shareholder of NIB Bank through its subsidiary Fullerton Financial Holdings Pte. Ltd, is likely to be reaching out to the Pakistani government through its embassy in Singapore for its support in this matter so that its rights and investments are fully protected.
Temasek Holdings fully believes that Mr. Iqbal’s actions have the potential of jeopardizing foreign investment in Pakistan, especially by Singaporean business entities.
The possible delay in the process of merger may lead to further losses to the stakeholders and shareholders of NIB Bank and may also create mistrust of foreign invest including China.”