KARACHI - Board of Directors of the MCB Bank has approved the proposed acquisition of Royal Bank of Scotlands local commercial and retail operations. The expected transaction is subject to signing of the share purchase agreement, SBP approval and other customary regulatory approval/requirements. MCB revealed this in a notice sent to Karachi Stock Exchange (KSE) on Monday. MCB further said the Board of Directors of MCB met on August 08, 2009 at MCB premises for announcing banks first half year financial results for 2009 and to consider proposed purchase of RBS, Pakistan (formerly ABN AMRO Bank). The top-level management of MCB has consented to participate in a bidding process, which is expected to be held soon for acquiring the stake of RBS, Pakistan by MCB Bank. According to a notice, the concerned parties are set to sign share purchase agreement soon which is being financially advised by Bank of America, Merrill Lynch and KASB Bank Limited on the proposed transaction. Some news reports have confirmed that the price formula of the deal has been finalised wherein MCB Bank would pay round $90 million for the acquisition of Royal Bank of Scotland, Pakistan. The price would be 0.76 times RBS Pakistans book value of Rs 9.888 billion, as of March 31. News reports were also quoted as saying that Australia & New Zealand Banking Group Ltd. on August 4 agreed to buy RBSs units in six Asian countries including Singapore, Hong Kong, Taiwan and Indonesia. ANZ Bank, Australias fourth- biggest lender, would pay $550 million for those assets. It is worth mentioning here that on February 26, 2009, the Royal Bank of Scotland Group had informed KSE through a notice that it had decided to divest from Pakistan as part of its global strategy and restructuring process. MCB Bank, Jahangir Siddiqui Company Ltd (JSCL) and Orascom Telecom Holdings had also expressed their inclination to purchase the complete shareholdings of RBS, Pakistan. It must be noted that all bidders had been submitted their due diligence disclosures report to their assigned financial advisors. The due diligence report provides complete operational roadmap on integration plan, bidding cost, branch network and cost efficiency of the potential buyers. Earlier on Monday, MCB Bank unveiled its first half financial results for 2009. MCB Bank posted profit after tax of Rs 7.76 billion during first half of Calendar Year 2009; translating into an EPS of Rs 11.2. During the period under review, the banks profit before tax increased by 10 per cent to Rs 11.7 billion over the corresponding period of last year. The Board of Directors of MCB Bank have announced cash dividend of Rs 2.5 per cent per share in 1H-2009 for the shareholders as against of Rs 3 per share of the same period of last year. According to financial accounts, the banks deposit grew by 10 per cent during the period under review from December 31, 2008, while gross loans and advances marginally decreased by Rs 315 million to Rs 273.2 billion in January-June 2009 from Rs 273.2 billion in 2008. Banks equity (before surplus) increased by 9 per cent over the equivalent period of last year.