MCB Bank Announces Demerger of 39 Branches to MCB Islamic Bank

Lahore, MCB Bank Limited disclosed today that its Board of Directors has approved a significant restructuring plan. The approval came during their meeting held on April 24, 2024, and concerns the demerger and subsequent conversion into Islamic banking of 39 of its branches.

Under the Scheme of Compromises, Arrangements and Reconstruction, detailed in compliance with Sections 279 to 283 & 285 of the Companies Act, 2017, the specified branches will be demerged from MCB Bank and integrated into MCB Islamic Bank Limited (MIB). This change will take effect on a date to be announced, following the fulfillment of various conditions. These conditions include obtaining No Objection Certificates from the State Bank of Pakistan, approval from the shareholders of both MCB and MIB, and sanction from the Lahore High Court.

The transaction is set to proceed against payment of cash consideration to MCB by MIB, aligning with the company’s strategic focus on expanding its Islamic banking operations. The public and stakeholders, including Trading Right Entitlement Certificate Holders of the Pakistan Stock Exchange, have been notified of these developments as per regulatory requirements.