Bank Makramah Limited has announced a major Bank Makramah restructuring plan to improve its financial health and strengthen its capital position. The details were shared in a notice submitted to the Pakistan Stock Exchange (PSX).
The bank’s board has approved changes that include reducing the sponsor’s ownership and converting unpaid Term Finance Certificates (TFCs) into company shares.
Sponsor Stake to Be Reduced
Earlier, the sponsor owned about 861 million shares, which made up 86.1 percent of the bank’s total capital. These shares were originally issued at Rs. 2.14 per share under an earlier restructuring scheme.
Now, the sponsor has suggested treating those shares as if they were issued at Rs. 6.25 per share. Because of this adjustment, the sponsor’s ownership will drop to around 75.8 percent.
The extra shares created from this change will be distributed free of cost to other shareholders, but only after approval from the Islamabad High Court under a legal Scheme of Arrangement.
Rs. 3.35 Billion TFCs to Convert Into Shares
The bank also plans to fix long-pending TFC payments that have been unpaid since October 2018 due to financial and economic issues.
Under the plan, Rs. 3.35 billion worth of TFCs will be converted into equity. This includes Rs. 1.49 billion principal and Rs. 1.85 billion profit up to December 31, 2025.
TFC holders will receive fully paid shares at Rs. 6.25 per share, increasing the bank’s share capital by Rs. 3.35 billion, subject to approvals.
According to Bank Makramah, the restructuring plan is designed to strengthen the bank’s capital base, resolve old liabilities, and improve value for shareholders in the long term.
