Bank Makramah Limited (BML) has received a formal proposal from its sole sponsor shareholder, Nasser Abdulla Hussain Lootah, suggesting an adjustment to his shareholding in the bank.
The bank disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
The proposal follows the recent sanction by the Islamabad High Court of a scheme of arrangement for BML, which included the merger of Global Haly Development Limited (GHDL) into the bank and a reduction in the bank’s share capital.
“This milestone represents a significant achievement in the bank’s ongoing capitalisation efforts and its progress toward meeting the minimum capital requirement (MCR) and capital adequacy ratio (CAR),” read the notice.
Under the original scheme, Lootah held 86.1% of the bank’s shares. In his letter to the BML Board, he proposed recalculating the number of shares issued to him under the scheme, based on the bank’s current share price of Rs6.25, as compared to Rs2.14 at the time the swap ratio was determined.
“Currently, the quoted price of the bank’s share on the PSX has increased significantly, and, in view thereof, I propose that the bank should evaluate a mechanism to adjust the number of shares already issued to me under the scheme in a manner so as to give the effect that the additional shares issued to me under the scheme are based on share value of Rs6.25 per share of the bank.
“This would be beneficial in the overall interest of the bank and its other shareholders
“This adjustment would result in my holding approximately 75.8% of the shares in the bank,” read Lootah’s letter to BML.
The BML Board confirmed it will carefully review the proposal, taking into account legal, accounting, and regulatory considerations.
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