The Board of Directors of Silkbank Limited has accorded its in-principle approval for a potential merger with and into United Bank Limited (UBL).
Silkbank confirmed this in a notification sent to the Pakistan Stock Exchange (PSX) on Wednesday.
The decision was made at a board meeting held on November 6, 2024.
The board has further authorised the Chief Executive Officer (CEO) of the bank to engage advisors and consultants to evaluate the offer made by UBL and to present their findings to the Board for its further consideration.
The proposed merger, structured as a scheme of arrangement under Section 48 of the Banking Companies Ordinance, 1962, will require clearance from the State Bank of Pakistan, as well as regulatory and corporate approvals.
Final terms of the transaction are still under negotiation and will be subject to additional approvals and documentation.
On November 1, United Bank submitted an offer for the merger of Silkbank into UBL under a scheme of amalgamation. UBL proposed to issue new ordinary shares to the shareholders of Silkbank on a ratio of one (1) new UBL ordinary share for every 325 Silkbank ordinary shares.
