MCB Bank Limited will acquire 99.37 percent of the ordinary share capital in The Royal Bank of Scotland Limited from its major shareholder and sponsor ABN Amro Bank N.V.The latter is a subsidiary of The Royal Bank of Scotland Group plc. The acquisition is in-line with MCB's strategy of expanding its service platform, strengthening its product offering and building on their expertise in transactional services.The transaction will increase the total number of branches of MCB to 1,139, and the total consolidated deposits will increase to US$5 billion and consolidated gross advances to US$3.9 billion.The proposed acquisition is conditional upon necessary Regulatory and other approvals.MCB will initially acquire from the Seller 1,707,107,891 of ordinary shares in RBS Pakistan, representing a 99.37 percent stake, for a cash price of PKR 4.22 per share. The total consideration to be paid will be US$ 87 million.MCB will fund the Transaction entirely through internally generated cash resources and the Transaction is not contingent on any external fund-raising."This is an important transaction for us as it strengthens our franchise in the key urban centers and broadens our product offering to our retail as well as corporate customers. We have also managed to add a large number of experienced professionals to our existing strong team. As a result of this transaction, I am confident that MCB's position has been strengthened to deliver on our growth plans," said MCB Chairman, Mian Muhammad Mansha.MCB President, Mr. Atif Bajwa said that "MCB is very pleased to enter into this agreement to acquire RBS Pakistan as it allows the bank to significantly progress in its strategy of building a stronger share in key segments of the market. MCB is looking to play an increasingly progressive role in the economy by providing innovative and value added products and services to a diverse customer base. The RBS acquisition will be crucial in providing access to important customers, in making available a strong human resource pool as well as an evolved product development and technology infrastructure. We are convinced that this transaction will be beneficial to all stakeholders."
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