Askari Bank board approves amalgamation of its subsidiary

KARACHI: The board of directors of Askari Bank Limited (AKBL) has approved the amalgamation of its wholly owned subsidiary Askari Securities Limited (ASL) with and into Foundation Securities Limited (FSL), a bourse filing showed on Tuesday.

“The board of directors of Askari Bank Limited (AKBL) had consented to expression of interest (EOI) received by the Askari Securities Limited (ASL) from Foundation Securities Limited (FSL) to explore possibility of amalgamation of ASL with and into FSL,” the filing said.

The shares of ASL will be cancelled and for each share held in ASL by AKBL as a holder of 100 per cent of shares thereof, 27.140 million shares of FSL will be issued to AKBL i.e., for every one ordinary share of ASL of Rs10 held by AKBL, 1.18 ordinary shares of FSL of Rs10 each will be allotted to AKBL, and ASL will then dissolve without winding up, it added.

 “The complete undertaking of ASL will be transferred and come to vest into FSL together with all properties, assets, liabilities and obligations of every description,” according to the filing.

ASL, a securities brokerage company is a wholly owned subsidiary of AKBL which is a public listed company with its shares listed on the Pakistan Stock Exchange (PSX), while the FSL is a majority owned by the Fauji Foundation (FF).

The boards of directors of AKBL, ASL and FSL have all resolved for the amalgamation of ASL with and into FSL subject to necessary regulatory and shareholders approvals.

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