The Summit Bank has officially announced its acquisition by a UAE-based investor and revealed its new name, Bank Makramah Limited (BML), as part of its planned transformation into an Islamic bank. The bank informed the Pakistan Stock Exchange (PSX) of the change and stated that the State Bank of Pakistan (SBP) had approved the new name.
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According to the notification sent to the PSX, the bank received consent or a No Objection Certificate (NOC) from the State Bank of Pakistan on July 17, 2023. However, implementing the name change is subject to various regulatory and corporate approvals.
The bank’s notice to PSX also mentioned that the name change will be effective once it secures the necessary regulatory approvals and obtains the support of the bank’s shareholders in an Extraordinary General Meeting. This approval will require a special resolution and the amendment of the bank’s Memorandum and Articles of Association.
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In summary, Summit Bank has informed the Pakistan Stock Exchange that it will change its name to Bank Makramah Limited (BML) to align with its intended Islamic overhaul. The State Bank of Pakistan has approved the new name, but its implementation is pending additional regulatory approvals and approval from the bank’s shareholders.
In 2021, a Dubai-based businessman initially expressed his intention to acquire a majority stake of at least 51% in Summit Bank, along with management control.
During that period, the businessman, Mr. Lootah, held a 0.51% ownership, equivalent to 13 million shares, in the bank.
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Following his expression of interest, the acquisition was officially completed earlier this year after receiving approval from the SBP (State Bank of Pakistan), the Securities and Exchange Commission of Pakistan, and the Competition Commission of Pakistan.
According to a press release from the bank, the investor subscribed to 3.98 billion new shares of Summit Bank at a price of Rs2.51 per share. This acquisition granted the businessman a majority equity stake in the bank.
