UBL Board Approves Amalgamation of Silk Bank

UBL Board Approves Amalgamation of Silk Bank

KARACHI, December 3, 2024 – In a significant move towards strengthening its market presence, United Bank Limited (UBL) has announced that its board of directors has approved the amalgamation of Silk Bank Limited (SBL) into UBL.

The decision, conveyed through a communication to the Pakistan Stock Exchange (PSX), was finalized during UBL 252nd board meeting held on December 2, 2024.

The approved amalgamation will be executed under a share swap arrangement in line with Section 48 of the Banking Companies Ordinance, 1962. Key resolutions passed during the meeting include the approval of the Agreement to Amalgamate, the Scheme of Amalgamation, and related documentation necessary to formalize the merger.

Under the terms of the share swap, one new ordinary share of UBL, with a face value of PKR 10, will be issued for every 325 shares of SBL. This arrangement will result in the issuance of 27,944,188 new ordinary shares of UBL, excluding any rights issues.

An Extraordinary General Meeting (EOGM) has been scheduled for December 30, 2024, in Islamabad, where UBL’s shareholders will review and vote on the proposed merger and related matters. To determine eligibility for participation, UBL’s Share Transfer Books will remain closed from December 23 to December 30, 2024.

The successful execution of this amalgamation is subject to several conditions. These include the finalization of definitive agreements, regulatory approvals from entities like the Competition Commission of Pakistan, and the sanction of the Scheme of Amalgamation by the State Bank of Pakistan.

This merger aligns with UBL’s strategic vision of growth through consolidation. By combining with SBL, UBL aims to enhance its operational capabilities, expand its market share, and capitalize on synergies within the banking sector. The move is seen as part of a broader trend of mergers and acquisitions in Pakistan’s financial industry, driven by the need for enhanced efficiency and competitiveness.

The upcoming EOGM is expected to play a pivotal role in shaping the future trajectory of the banking giant as it moves toward integration with SBL.