The board of directors of Bank Makramah Limited (BML), formerly known as Summit Bank, has approved a comprehensive Scheme of Arrangement for the bank’s restructuring. This decision was communicated to stakeholders through a notice issued to the Pakistan Stock Exchange (PSX) on Thursday.

The notice stated, “We are pleased to inform that the BoD of Bank Makramah Limited, in their meeting held on November 28, 2024, has approved the Scheme of Arrangement for the restructuring of the bank.” The restructuring plan is contingent upon obtaining all necessary regulatory, corporate, and shareholder approvals, as well as sanctions from the High Court of Islamabad under Sections 279 to 283 and 285(8) of the Companies Act, 2017.

The restructuring scheme includes several key components: the amalgamation of Global Haly Development Limited (GHDL) into BML, the issuance of fully paid ordinary shares of the bank to GHDL shareholders, the settlement of the TFC redemption amount through the issuance of fully paid ordinary shares to TFC holders, and the reduction of the bank’s share capital by canceling shares unrepresented by available assets.

BML anticipates that the restructuring will result in an increase in its net assets by approximately Rs29.39 billion.

The transformation of Summit Bank into Bank Makramah Limited occurred in November of the previous year, following the acquisition of a controlling stake by prominent UAE investor Nasser Abdulla Hussain Lootah. In April of the same year, Lootah subscribed to 3.98 billion new shares of the bank at Rs2.51 per share, amounting to a Rs10 billion investment and securing a majority equity stake.