The Board of Directors (BoD) at MCB Bank has given its go-ahead to the management to conduct due diligence of Silkbank Limited.

MCB Bank shared the development in a filing to the Pakistan Stock Exchange (PSX) on Monday.

“Subject to the approval of the State Bank of Pakistan (SBP), the Board of Directors has accorded its in-principle approval to the Management of the Bank (MCB) to conduct a detailed due diligence of M/s Silkbank Limited, a commercial bank listed on the PSX.

“However, the potential transaction will be pursued subject to favorable outcome of due diligence, internal and regulatory approvals and definitive documents.”

Earlier this month, BoD at Silkbank Limited had given its approval to formally pursue the potential merger with United Bank Limited (UBL).

“The Board of Directors of the bank has reviewed and considered the UBL proposal and granted its approval to the management of the bank to formally pursue the potential merger and take the required steps, including but not limited to seeking permission of State Bank of Pakistan (SBP) for allowing due diligence of the bank and to enter into discussions with UBL, to finalise the terms and conditions/documentation for placing before the Board, for its consideration and approval, if considered appropriate,” Silkbank said back then.

UBL in a surprising move expressed its interest to merge with Silkbank Limited.

Back in April, the International Commercial Bank South Sudan (ICB), a national South Sudanese bank, expressed its intention to invest up to 50 million euros ($54.5 million) in Silkbank.

Last year, Park View Enclave (Private) Limited (PVEL), owned by businessman and politician Aleem Khan, withdrew its intention to acquire at least 51% shareholding and control of Silkbank Limited.