United Bank Limited (UBL) has announced the approval of its amalgamation with Silk Bank Limited (SBL) through a share swap arrangement, according to a disclosure filed with the Pakistan Stock Exchange (PSX) on Tuesday.Â
The decision was taken at the 252nd meeting of UBL’s Board of Directors held on December 2, 2024.
Under the merger plan, each share of UBL, will be exchanged for 325 shares of Silk Bank. This will result in the issuance of 27,944,188 new ordinary shares of UBL, excluding any rights issues.
An Extraordinary General Meeting (EOGM) of UBL shareholders has been scheduled for December 30, 2024, in Islamabad to secure shareholder approval for the merger. The Share Transfer Books of UBL will remain closed from December 23 to December 30, with share transfers submitted by December 20 eligible for EOGM participation.
The announcement remains subject to several regulatory approvals, including clearance from the State Bank of Pakistan, the Competition Commission of Pakistan, and third-party stakeholders, along with shareholder and corporate consents.
The amalgamation aligns with Section 48 of the Banking Companies Ordinance, 1962, and aims to strengthen UBL’s market position and operational capabilities.
Last month, the Board of Directors of Silkbank accorded their in-principle approval for a potential merger into UBL.
On November 1, UBL submitted an offer for the merger of Silkbank into UBL under a scheme of amalgamation.
