Fauji Foundation, a Pakistani conglomerates company intends to acquire majority stake of Silkbank Limited, it was learnt on Thursday.

“We would like to inform you that Fauji Foundation have expressed an interest in acquiring the majority stake in Silkbank Limited,” the bank informed in its filing to the bourse. It is pertinent to mention that Fauji Foundation is active in financial services, fertilizer, cement, food, power generation, gas exploration, LPG marketing and distribution, financial services, and security services.

The bank informed that as part of the process Silkbank has been requested to allow Fauji Foundation to conduct due diligence of the bank and in this regard, Fauji Foundation intends to apply to the State Bank of Pakistan for the requisite approval of the same.

“Silkbank hereby notified the Pakistan Stock Exchange that the board of directors of Silkbank Limited in its meeting held on January 28 2021, has subject to the approval of the State Bank of Pakistan, given its in-principle approval to allow Fauji Foundation to conduct the required due diligence and evaluate the information that will be provided by Silkbank in this regard,” it added.

Back in October, the Board of Directors (BoD) of Silkbank Ltd declared pre-tax profits of Rs4.1bn for the 2nd quarter of 2020.The bank also declared a pre-tax profit of Rs3.2bn for the first half ending June 30, 2020, which is Rs2.9bn better than the first half of 2019.

Expenses were lowered by 7 per cent year on year (YoY) while the bank continued with prudently providing for weak accounts.