Bank Makramah Limited (BML) has successfully secured overwhelming support from its shareholders for its proposed restructuring plan. The Scheme of Arrangement, which was presented during the bank’s Extraordinary General Meeting (EGM) on December 26, 2024, received an extraordinary 99.99% of votes in favor, signaling a strong consensus among stakeholders for this pivotal initiative.
The restructuring plan, which has been filed before the Islamabad High Court, aims to enhance the bank’s financial position while ensuring compliance with the State Bank of Pakistan’s regulatory capital requirements. The approved scheme is expected to substantially strengthen BML’s net assets by approximately Rs. 29.39 billion, reinforcing its overall financial foundation and enabling it to better serve its stakeholders in the future.
The Scheme of Arrangement is designed to include several strategic measures. First, the amalgamation of GHDL’s undertaking into BML will bring together the operations and assets of both entities. This integration is expected to expand BML’s resources and capabilities, laying a stronger foundation for future growth. Additionally, the restructuring involves the issuance of fully paid ordinary shares of BML to GHDL shareholders, ensuring that the transition is smooth and shareholders are adequately compensated. The next step in the plan involves the settlement of the TFC Redemption Amount, which will be addressed by issuing fully paid ordinary shares of BML to TFC holders, further enhancing the bank’s capital reserves. Finally, the scheme includes the reduction of BML’s share capital by canceling the share capital that is unrepresented by available assets, streamlining the bank’s financial structure.
This restructuring represents a significant milestone for BML, as it seeks to enhance its financial stability and ensure long-term growth. The bank’s leadership believes that this strategic move will not only meet regulatory capital requirements but also strengthen the institution’s overall operational efficiency. By improving its capital structure, Bank Makramah is positioning itself as a more resilient financial entity capable of meeting the evolving needs of its customers and stakeholders.
With shareholder approval now in place, the bank is set to implement the restructuring plan, moving forward with confidence. This restructuring underscores the bank’s commitment to sustainable financial practices, regulatory compliance, and its long-term vision for growth and stability in a competitive banking environment. It also reflects the strong support of BML’s shareholders, who are united in their belief that these changes will enhance the bank’s future prospects.