Arif Habib at the helm as DM Holdings sets sights on Bank Makramah stake

June 12, 2026 (MLN): Arif Habib Limited (PSX: AHL) has been appointed as Manager to the Offer by DM Holdings Limited, which has formally announced its intention to acquire a significant shareholding in Bank Makramah Limited (PSX: BML).

This development will potentially change in control of the listed lender.

In a regulatory filing submitted to the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX), DM Holdings disclosed its Public Announcement of Intention under the Securities Act, 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.

The proposed transaction, if completed, may trigger a mandatory public offer for at least 50% of the remaining voting shares of Bank Makramah, depending on the final structure and level of control achieved.

However, the acquirer has stated that the exact size of the stake to be acquired remains “not determinable at this stage” and will be finalized through a share purchase agreement, subject to regulatory approvals.

Bank Makramah, which remains heavily concentrated in terms of ownership, is majority held by Abdulla Nasser Abdulla Hussain Lootah with an 83.78% stake, making any successful bid a material shift in control and governance.

The announcement indicated renewed merger and acquisition interest in Pakistan’s banking sector, where investors are increasingly eyeing distressed or undercapitalized lenders amid regulatory tightening and ongoing balance sheet restructuring across the industry.

DM Holdings Limited, incorporated in May 2026, is a privately held investment and holding company based in Karachi with authorized capital of PKR 100 million.

The company is owned by Deoomal Essarani (50%), Dr. Tara Chand (25%), and Mahesh Kumar (25%), all of whom also serve as directors and ultimate beneficial owners.

The group’s principals bring experience across sugar manufacturing, ethanol production, fertilizer and commodity trading, packaging solutions, and corporate restructuring, sectors often associated with turnaround-focused investment strategies.

According to the disclosure, DM Holdings aims to deploy long-term strategic capital across diversified industries, with the potential acquisition of Bank Makramah marking its entry into the financial services sector.

Under Pakistan’s takeover framework, any successful acquisition beyond prescribed thresholds would require the acquirer to extend a public offer to minority shareholders, ensuring exit opportunity at a regulated price.

The structure also allows for competitive bidding if an alternate acquirer emerges during the process.

Bank Makramah shares closed at PKR 61.22 on June 11, 2026, while the 28-day volume-weighted average price stood at PKR 59.01, according to exchange data.

Financial performance disclosures show the bank has struggled with volatility in profitability in recent years, though recent data suggests partial stabilization in equity position after prior losses.

Market participants are expected to closely watch regulatory approvals, funding clarity, and potential rival bids, which could shape the final contours of the transaction and valuation discovery in the stock.

The development adds to a growing pipeline of consolidation signals in Pakistan’s financial sector, where strategic and opportunistic investors are increasingly evaluating acquisition opportunities amid structural reforms and capital pressure.

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