Silkbank’s right shares option goes unexercised

KARACHI: Silkbank Limited conducted an issue of 311 per cent right shares of Rs10 each at a discount of Rs7.5 per share. The right shares were offered to existing shareholders of the bank in proportion to their current shareholding.

Bank Muscat rejected 982 million shares that it was offered and informed the board that it would not be exercising its option to buy the shares and requested the board of directors of the bank to offer and allot right shares to such investors which they deem fit. Bank Muscat is the majority shareholder in the bank with approximately 315 million shares.

Furthermore, 52 million shares in the rights issue were not subscribed to and paid for by the existing shareholders of the bank and accordingly such shares were returned to the board of directors of the bank for allotment.

In light of the unsubscribed right issues, the bank has decided to allot and issue right shares to its Chief Executive Officer, Azmat Tarin, subject to approval of the Securities and Exchange Commission.

Tarin, in turn, has been allowed to allot the shares to any third party, including senior management. He will hold 28.5 per cent of the issued and paid-up capital of the bank subsequent to the issue of right shares.

Published in The Express Tribune, July 29^th, 2010.