The board of directors (BoD) of Bank Makramah Limited (BML), formerly known as Summit Bank, has approved the Scheme of Arrangement for the bank’s restructuring.

BML informed its stakeholders of the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“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,” read the notice.

BML shared that the scheme is subject to procurement of all applicable regulatory, corporate and shareholders’ approvals; and sanctions by the High Court of Islamabad under Sections 279 to 283 and 285(8) of the Companies Act, 2017.

“The broad terms of the restructuring scheme are as follows: i. Global Haly Development Limited(GHDL”) shall stand amalgamated into the bank; ii. Fully paid ordinary shares of the Bank shall be issued and allotted to shareholders of GHDL; iii. TFC redemption amount, as defined in the restructuring scheme, shall be settled and paid through issuance and allotment of fully paid ordinary shares of the bank to TFC holders; and iv. Share capital of the bank shall be reduced through cancellation of the share capital unrepresented by available assets,“ BML shared in its notice.

The bank stated that the net impact of the restructuring scheme is an increase in the net assets of the BML by approximately Rs29.39 billion.

In November last year, the name of Summit Bank was changed to BML. The name change came after prominent UAE investor Nasser Abdulla Hussain Lootah acquired a controlling stake in Summit Bank.

In April last year, Lootah subscribed to 3.98 billion new shares of the bank at Rs2.51 per share, which translated into a subscription amount of Rs10 billion, giving him a majority equity stake.