The Supreme Court of Pakistan (SC) has dismissed the petition filed by Khadim Ali Shah Bukhari, former CEO of defunct KASB bank and other shareholders, challenging the KASB merger with BankIslami.
“The Honourable Supreme Court of Pakistan by an order has dismissed the application given by Nasir Ali Shah Bukhari and other minority shareholders of the Defunct KASB Bank Limited challenging merger of KASB into BankIslami Pakistan Limited,” announced BankIslami in a notice sent to Pakistan Stock Exchange (PSX) on Monday.
Earlier, in July the State Bank of Pakistan (SBP) disposed all objections raised regarding the merger of defunct KASB Bank into BankIslami, in the light of orders of the Sindh High Court.
In April, the Sindh High Court (SHC) ordered the SBP to reconsider valuation of the defunct KASB Bank and gave its ruling that the central bank did not adequately fulfill its statutory duty to protect the interests of all stakeholders.
The court had asked the State Bank of Pakistan (SBP) to revisit the whole process set out for determination of the valuation. Previously, shareholders of defunct KASB Bank had sought a minimum compensation of Rs14.2 billion by terming the Rs5.9 billion negative valuation of the bank, which was later determined by AF Ferguson as mala fide and dubious.
On the basis of the negative valuation given by AF Ferguson chartered accountancy firm, the central bank had amalgamated KASB Bank with BankIslami at a nominal price of Rs1,000 in 2015.
Published in Daily Times, September 4th 2018.
