According to a disclosure filed with the Pakistan Stock Exchange (PSX) on Tuesday, United Bank Limited declared its consent for a merger with Silk Bank Limited (SBL) under a share exchange settlement.
This commitment was made at the 252nd meeting of UBL’s Board of Directors on December 2, 2024.
325 shares of Silk Bank will be shared for each share of UBL under this merger plan, which results in the issuance of 27,944,188 new ordinary UBL shares, omitting any right issues.
To secure shareholder endorsement for the amalgamation, an Extraordinary General Meeting (EOGM) of UBL has been expected to be held in Islamabad on December 30, 2024.
From December 23 to December 30, the UBL’s Share Transfer Books will remain closed, and the share transfers submitted by December 20 will be eligible for EOGM participation.
In addition to shareholder and corporate consent, the announcement is still pending regulatory approvals from the State Bank of Pakistan, the Competition Commission of Pakistan, and other third-party stakeholders.
The merger aligns with Section 48 of the Banking Companies Ordinance, 1962, and intends to boost UBL’s market position and operational competencies.
The Silk Bank’s Board of Directors granted their in-principle consent for a merger into UBL.
UBL proposed an offer for the incorporation of Silk Bank into UBL through the arrangement of amalgamation.
