Silk Bank is a mid-sized Pakistani bank that recently invited local and foreign investors to get shares in the bank. Gourmet Foods eyes share-holding in Silk Bank to our surprise. The popular bakers and confectioners are now aiming to expand their business to banking after marking success in furniture and medicine.
As per ProPakistani, Gourmet Food will be investing Rs. 3.7 billion in the Silk Bank. The negotiations between both the parties have been successful. After the necessary regulatory approvals by State Bank of Pakistan, Gourmet Foods will earn certain amount of shares in the bank.
Gourmet Foods is interested in investing Rs 3.7 billion in the mid-sized Silk bank, which recently invited many local and foreign investors to venture for handsome returns in the highly attractive banking industry of Pakistan. The management of Silk Bank is welcoming this investment. But still, they are preferring their underwriter M/s. Arif Habib. He also pledged to subscribe its right shares up to Rs. 6 billion. The addition of this amount will make the overall paid-up capital of the bank to Rs. 16 billion surpassing the central bank set benchmark of Rs. 10 billion.
M/s. Arif Habib is certainly gonna preferred by the bank because of sound financial standing, reputation and experience in the financial market. However, if this does not happen, Silk Bank will finalize its deal with Gourmet Foods.
The investment of Gourmet Foods in Silk Bank will be beneficial for both the organizations. The investment will help Silk Bank earning good profits but also will expand its partner’s business through financing and credit facility. Financing Gourmet Foods projects will also help Silk Bank in securing its finances.
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