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Mercantile Leasing Limited’s shareholders will go into an emergency meeting next week to approve a deal to merge with group peer Nations Trust Bank. The emergency meeting set for November 28, follows a meeting at Nations Trust Bank earlier this week, where shareholders gave their nod for the deal.
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The merger however needs Central Bank and court approval to go ahead.
If approved however MLL shareholders will trade one of their shares for two share in NTB, the Mercantile Leasing statement in September said.
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A statement said the proposed share swap ratio is based on an independent valuation of NTB and MLL conducted by the NDB Investment Bank.
The John Keells Group holds a 25 percent stake in NTB and a 75.
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36 percent stake in MLL.
The deal will add a leasing business to NTB’s commercial banking portfolio.
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The Board of Directors of NTB believe the merger will create significant value addition to the shareholders of both NTB and MLL.
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MLL shares closed flat at Rs. 59.0