United Bank Limited (UBL) has approved its merger with Silk Bank Limited (SBL) through a share swap agreement, as announced in a disclosure to the Pakistan Stock Exchange (PSX) on Tuesday. The decision was made during UBL’s 252nd Board of Directors meeting on December 2, 2024.
Under the merger plan, each UBL share will be exchanged for 325 shares of Silk Bank. This arrangement will lead to the issuance of 27,944,188 new UBL ordinary shares, excluding any rights issues. The merger aims to enhance UBL’s market position and operational strength.
To finalize the merger, an Extraordinary General Meeting (EOGM) of UBL shareholders is set for December 30, 2024, in Islamabad. Share transfers submitted by December 20 will be eligible for participation. The Share Transfer Books of UBL will remain closed from December 23 to December 30.
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The merger is subject to regulatory approvals, including clearance from the State Bank of Pakistan, the Competition Commission of Pakistan, and third-party stakeholders, along with shareholder and corporate consents. This process complies with Section 48 of the Banking Companies Ordinance, 1962.
Last month, Silk Bank’s Board of Directors gave in-principle approval for the merger. On November 1, UBL formally submitted its offer to merge Silk Bank, taking a key step towards consolidating its market presence.
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