Author Topic: NIB -- NIB Bank  (Read 125361 times)

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Offline MZ

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Re: NIB -- NIB Bank
« Reply #539 on: December 07, 2016, 09:18:05 PM »

Flash Note



NIB merges into MCB; Value accretive for MCB in the long run
·         As per respective stock filings by MCB and NIB, the respective Boards of Directors of MCB and NIB have approved the amalgamation scheme of NIB into MCB based on a swap ratio of 1 share of the merged entity for every 140 shares of NIB resultantly MCB would issue 73.6mn additional shares (i.e. 6.6% dilution). The final decision in this regard is contingent on various regulatory and shareholders approvals.

·         Based on today’s closing prices, the acquisition deal is valued at PKR1.63/sh (PKR16.86bn) representing a 22% discount to NIB’s last closing price.

·         Despite losing balance sheet quality in near term, we believe NIB’s acquisition is expected to yield longer term benefits for MCB by virtue of 1) potential of NPL recoveries given its commendable track record of the past (PKR27.4bn), ii) additional branch network (171 as of 2015 financial accounts) that could provide impetus to MCB’s deposit franchise, allowing for greater asset deployment and making MCB the third largest bank by number of branches in the country & iii) greater tax benefits where NIB currently has deferred tax assets amounting to PKR8.7bn.

·         The acquisition of NIB will likely somewhat deteriorate an otherwise impeccable operating metrics of MCB where we estimate (based on 3Q2016 financials) i) CASA ratio to come off by 3pp to 89%, ii) infection ratio to jump by 4.1pp to 10.1% and iii) cost to income ratio to increase by 4pp to 42%. While coverage ratio of MCB recently deteriorated to 83%, down 4pp QoQ basis, robust coverage ratio of NIB of 88% is expected to jack up MCB’s NPL coverage by 3pp.

Pakinvestorsguide

Re: NIB -- NIB Bank
« Reply #539 on: December 07, 2016, 09:18:05 PM »

Offline alidxb

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Re: NIB -- NIB Bank
« Reply #540 on: December 08, 2016, 11:11:53 AM »
Bad for NIB shareholders. Will go further down.
In the long run, everything settles at the place it deserves.

Offline Alisajid

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Re: NIB -- NIB Bank
« Reply #541 on: December 08, 2016, 06:26:19 PM »
What is the affect date for this agreement?

Offline sadiq

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Re: NIB -- NIB Bank
« Reply #542 on: December 08, 2016, 07:28:42 PM »
Is there in chance to get back the price.i hold rs2.2/s more than 3 years.what exactly time to convert in MCB

Offline sadiq

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Re: NIB -- NIB Bank
« Reply #543 on: December 08, 2016, 11:56:53 PM »
please guide seniors Is any hope to recover ???????????????????????????/

Offline SBM

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Re: NIB -- NIB Bank
« Reply #544 on: December 09, 2016, 11:45:46 AM »
Is there in chance to get back the price.i hold rs2.2/s more than 3 years.what exactly time to convert in MCB

wait for conversion into mcb shares
I believe you can sell in profit in 18 months time holding those mcb shares
I hate waking up.

Offline AL-IMRAN

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Re: NIB -- NIB Bank
« Reply #545 on: July 01, 2017, 03:49:47 PM »
NIB merge ho raha hai 7th July 2017 se MCB k sath. kia impact ayega is k share price par? 1 ya 2 rupees ka gain possible hai kia in short term?seniors aap log batain hum kia jane?

Offline SBM

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Re: NIB -- NIB Bank
« Reply #546 on: July 03, 2017, 10:53:25 AM »
NIB merge ho raha hai 7th July 2017 se MCB k sath. kia impact ayega is k share price par? 1 ya 2 rupees ka gain possible hai kia in short term?seniors aap log batain hum kia jane?

no gain
I hate waking up.

Offline Aahaf

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Re: NIB -- NIB Bank
« Reply #547 on: July 04, 2017, 12:59:30 AM »
NIB merge ho raha hai 7th July 2017 se MCB k sath. kia impact ayega is k share price par? 1 ya 2 rupees ka gain possible hai kia in short term?seniors aap log batain hum kia jane?
Mkt will bounce back from 39000 is your quote isn't it

Offline Aahaf

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Re: NIB -- NIB Bank
« Reply #548 on: July 04, 2017, 01:02:13 AM »
Nothing will happen to NS is your challenge , itna to Khud NS to nahi pata hoga