Karachi: United Bank Limited (UBL) has announced its decision to merge with Silk Bank Limited (SBL) through a share swap arrangement, as approved by the Board of Directors in their 252nd meeting held on Monday, December 2, 2024. The merger, set to be executed under Section 48 of the Banking Companies Ordinance, 1962, is a significant move in the banking sector, involving the issuance of nearly 27.94 million new ordinary shares of UBL.

The amalgamation agreement, including the Scheme of Amalgamation and related documentation, has been approved, with the share swap ratio set at one new ordinary share of UBL for every 325 shares of SBL. This decision involves the issuance of 27,944,188 ordinary shares of UBL, each having a face value of PKR 10.

An Extraordinary General Meeting (EOGM) of UBL shareholders is scheduled for Monday, December 30, 2024, in Islamabad to consider and approve the amalgamation and related matters. The share transfer books of UBL will remain closed from December 23 to December 30, 2024, to facilitate this process. Transfers received by close of business on December 20, 2024, will be considered for EOGM attendance entitlement.

According to information available from the Pakistan Stock Exchange (PSX), the decisions of UBL's Board are contingent upon the execution of definitive agreements, obtaining necessary corporate, regulatory, and third-party approvals, and the sanction of the Scheme of Amalgamation by the State Bank of Pakistan.

The disclosure of this material information is in compliance with the Securities Act, 2015, and relevant regulations of the Pakistan Stock Exchange.