United Bank Limited (UBL) has submitted an offer for the merger of Silkbank Limited into UBL under a scheme of amalgamation to be reviewed and approved by the State Bank of Pakistan (SBP).
UBL disclosed this development through a notice sent to the Pakistan Stock Exchange (PSX) on Friday in accordance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the PSX.
“Further to our disclosure dated 28 April 2023, United Bank Limited is pleased to inform that it has submitted an offer to Silkbank Limited for the amalgamation of Silkbank with and into UBL pursuant to a scheme of amalgamation to be filed with and sanctioned by the SBP under Section 48 of the Banking Companies Ordinance, 1962,” read the notice.
As consideration for the amalgamation, UBL has proposed to issue and allot new UBL ordinary shares to the shareholders of Silkbank on the basis of a ratio of one (1) new UBL ordinary share for every 325 Silkbank ordinary shares.
The offer and the amalgamation remain subject to the approval of the Board of Directors and shareholders of UBL, execution of definitive transaction documents between UBL and Silkbank, and receipt of all corporate, regulatory and third-party approvals and consents required for the amalgamation.
UBL said it will keep the exchange informed of any material developments in this regard.
