Karachi: United Bank Limited (UBL) announced the successful credit of shares into the respective Central Depository Company (CDC) accounts of former Silk Bank Limited (SBL) shareholders, marking a significant step in the ongoing amalgamation process. The development follows the sanction of the Scheme of Amalgamation by the State Bank of Pakistan (SBP), effective March 11, 2025.

According to the announcement, 27,944,188 new ordinary shares of UBL, each with a face value of PKR 10, have been issued to the entitled shareholders of the defunct SBL. This issuance was conducted in accordance with the approved swap ratio, whereby one new ordinary share of UBL was allocated for every 325 ordinary shares of SBL. This process aligns with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the Pakistan Stock Exchange Limited (PSX).

The amalgamation, sanctioned under Section 48 of the Banking Companies Ordinance, 1962, was initially disclosed by UBL on March 11, 2025, following the SBP's approval. The issuance of UBL shares was completed for all shareholders registered as of March 20, 2025.

According to information available from the Pakistan Stock Exchange (PSX), the transaction is part of a broader strategy to consolidate banking operations and enhance the financial stability of UBL. The market has been closely monitoring the developments, as the integration of SBL into UBL is expected to have significant ramifications for stakeholders and the banking sector.

The dissemination of this information has been requested for TREC Holders of the Exchange, ensuring transparency and compliance with regulatory requirements. The designated market category for this transaction remains strictly in line with the provisions outlined in the Securities Act and the PSX Rule Book.