The Board of Directors at Silkbank Limited has permitted MCB Bank to proceed with due diligence for the acquisition deal.

Silkbank shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“We would like to inform you that MCB Bank Limited vide its letter dated May 31, 2023, expressed its interest to initiate the due diligence of Silkbank Limited (Bank), subject to SBP approval.

“In this regard, the Board of Directors of the Bank, has reviewed and considered the MCB request and granted its in-principle approval to the management of the Bank to seek regulatory approval from the State Bank and take the required steps for initiating the due diligence of the Bank,” read the notice to the bourse.

The development comes after the board at MCB Bank gave its go-ahead to the management to conduct due diligence of Silkbank Limited.

Last month, the board at Silkbank Limited gave its approval to formally pursue the potential merger with United Bank Limited (UBL).

UBL in a surprising move expressed its interest to merge with Silkbank Limited.

Back in April, the International Commercial Bank South Sudan (ICB), a national South Sudanese bank, expressed its intention to invest up to 50 million euros ($54.5 million) in Silkbank.

Last year, Park View Enclave (Private) Limited (PVEL), owned by businessman and politician Aleem Khan, withdrew its intention to acquire at least 51% shareholding and control of Silkbank Limited.