Silkbank Approves MCB’s Request for Due Diligence Over Potential Acquisition

Silkbank Limited (PSX: SILK) has approved MCB Bank Limited’s (PSX: MCB) request to conduct due diligence, the bank told 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,” the filing stated. The Board of Directors of SILK 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, the filing added. This comes after MCB on Monday said its management had accorded its in-principle approval to conduct detailed due diligence of Silkbank Limited. “However, the potential transaction will be pursued subject to favorable outcome of due diligence, internal and regulatory approvals and definitive documents,” an MCB filing read in this regard. It bears mentioning that besides MCB, Silkbank has received merger proposals from United Bank Limited and the International Commercial Bank of South Sudan to subscribe to its shares up to the extent of 50 million euros.