StanChart gets nod to merge its subsidiary
Security and Exchange Commission of Pakistan (SECP) has finally given a green signal to Standard Chartered Bank for merger and amalgamation scheme of its two subsidiaryStandard Chartered Leasing with Orix Leasing Pakistan Limited.
Asif Iqbal Alam, Company Secretary of Standard Chartered Bank said the amalgamation scheme of the bank with leasing companies were approved by SECP following it received approval from its shareholders in a meeting held in March 2016. According to scheme sanctioned by regulatory, OLP shall pay to minority shareholders either 1 share or OLP for 6.4 share of Standard Chartered Leasing Company or Rs 9.85 per share on the other hand. The amalgamation price to Standard Chartered Bank having major shareholding is set at Rs f Rs 7.88 per share.
The amalgamation of two leasing companies-Orix Leasing and Standard Leasing will merge their operations including assets and products in accordance with scheme resulting divestment of Standard Chartered Bank as major shareholder with the amount of Rs 666 million. According to details of scheme, the entire undertaking of the Standard Chartered Leasing, including all the properties, assets and liabilities and all the rights and obligations of the Company as at the Effective Date, shall, without any further act stand amalgamated with and vest in Orix Leasing. Related to transfer of operations, all rights, benefits and powers in respect of any leases, loans, advances, finances and/or other banking and credit facilities provided by the Standard Chartered shall stand merged. Besides, assets to be merged are properties (including the Immovable Properties) of whatsoever nature and all deposits, cash balances, reserves, revenue balances, investments, statutory or other deposits with any bank and all title, rights or interest in or arising out of such property as may belong to or be in the possession (physical or constructive) of the Company. At least seven days' notice shall be given by the Standard Chartered to the Shareholders in the manner provided in its Articles of Association for the final closure of the register of shares of the Company to which the ordinary shareholders of the Company are to be determined for entitlement to the relevant Consideration. The payment of the Minority Shareholders Consideration or issuance of OLP Shares to the Minority Shareholders shall be made by OLP within three (3) Business Days from the date notified to the Shareholders for delivery of share certificates of the Company for cancellation.