Lahore: In a significant development in Pakistan's banking sector, Silkbank Limited announced its planned merger with United Bank Limited (UBL) following the board’s approval in a meeting held on December 4, 2024. The merger will involve a share swap arrangement as part of the amalgamation process, according to information released by the bank.

The board of directors of Silkbank, in their 206th meeting at the Lahore office, approved the amalgamation plan. The merger will see the entire undertaking of Silkbank being absorbed into UBL, with the share swap arrangement set at one new ordinary share of UBL for every 325 shares of Silkbank, maintaining a face value of PKR 10 per share. This arrangement will lead to the issuance of 27,944,188 ordinary shares of UBL, excluding any right issues.

According to information available from the Pakistan Stock Exchange (PSX), the proposed amalgamation will require several procedural steps. These include the execution of an Amalgamation Agreement, a Scheme of Amalgamation, and other necessary documentation. The merger is subject to the completion of corporate and regulatory formalities, obtaining requisite approvals from shareholders and regulatory bodies, and the sanctioning of the scheme by the State Bank of Pakistan.

An Extraordinary General Meeting of Silkbank is scheduled for December 26, 2024, at 2:30 PM. This meeting will provide a platform for Silkbank’s shareholders to consider and approve the proposed amalgamation and the associated resolutions.

The merger agreement is an essential move for Silkbank, as detailed in their disclosure form filed under the Securities Act, 2015. The form, as required under S.R.O. 143/(1)/2012, was presented to ensure compliance with regulatory standards.