Deadline Extended for Selling Shares of 5 Merged Banks

EghtesadOnline: According to a notice by Central Bank of Iran, the previous deadline for selling shares of five merged banks and credit institutions has been extended for 15 working days ending on June 13.

News ID: ۷۴۷۳۸۸

21 May 2019

The CBI in March announced a plan to merge Ansar Bank, Bank Hekamt Iranian, Mehr Eqtesad Bank, Ghavamin Bank, and Kosar Credit Institution - affiliated to armed forces - with the state-owned Bank Sepah.

Earlier it was said that the merged entities would officially merge with Bank Sepah after the deadline for selling their shares ended on May 19.

The Securities and Exchange Organization announced earlier that the shareholders can offer shares in after-hours trading at a maximum nominal price or at prices quoted at the time symbols are frozen, whichever is higher, according to Financial Tribune.

Accordingly, it is not mandatory for shareholders to sell shares now. If they believe the price of their shares is higher, they can wait for judicial auditors to look at the merged banks’ balance sheets and decide shareholders’ rights.

The CBI has assured clients, depositors, shareholders, employees and beneficiaries of merged banks that their rights will be fully protected.

The merger is in line with broader CBI plans to reform the struggling banking sector and promote transparency and openness in the bloated banking industry.