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The merger between Silk Bank Limited (SILK) and United Bank Limited (UBL) has been approved by both parties. UBL, one of Pakistan’s largest commercial banks, announced the news on Tuesday in a notice to the Pakistan Stock Exchange (PSX).
According to the notice sent to the bourse, “We have to inform you that the Board of Directors (BoD) of UBL in their 252nd meeting held on Monday 02 December 2024, approved the amalgamation of SILK with and into UBL through a share swap arrangement in accordance with section 48 of Banking Companies Ordinance, 1962.” That was read out by the board.
According to the bank, the Board of Directors has given its approval for UBL to enter into the merger agreement, amalgamation plan, and any other necessary ancillary documents.
The notice said, “On the basis of the swap ratio of one new ordinary share of UBL with a face value of Rs10 in exchange for 325 already issued shares of SILK, each share having a face value of Rs10, issuance of 27,944,188 ordinary shares of UBL other than the right issue.”
In order for the shareholders of UBL to review and approve the merger, the bank announced that an EOGM will be held on December 30, 2024.
Under Section 48 of the Banking Companies Ordinance, 1962, the State Bank of Pakistan must sanction the Scheme of Amalgamation before UBL and SBL can make any decisions. This includes receiving all corporate, regulatory, and third-party approvals, as well as the execution of definitive agreements for and related to the Amalgamation. Earlier this month, UBL made an amalgamation offer to Silkbank Limited, intending to merge the two companies.
