UBL Gets Board Approval to Merge With Silkbank

The Board of Directors ofUnited Bank Limited (UBL) [PSX: UBL],in its 252nd meeting held on Monday, approved the amalgamation ofSilkbank Limited (SBL)with and into UBL through a share swap arrangement. The merger, undertaken in accordance with Section 48 of the Banking Companies Ordinance, 1962, aims to streamline operations and enhance value for stakeholders. As part of the process, UBL’s board approved the Agreement to Amalgamate, the Scheme of Amalgamation, and related ancillary documents. These agreements form the foundation of the merger, ensuring compliance with regulatory requirements and corporate governance protocols. Under the approved terms, UBL will issue one new ordinary share with a face value of PKR 10 for every 325 shares of SBL, each with a face value of PKR 10. This share swap will result in the issuance of 27,944,188 ordinary shares by UBL, excluding any rights issue. The proposed merger remains subject to several conditions, including: The transaction will also require shareholder approval from both UBL and SBL. Once finalized, the amalgamation is expected to enhance UBL’s market position and operational efficiency. The merger reflects UBL’s strategic commitment to expanding its footprint in Pakistan’s banking sector while optimizing resources and leveraging synergies.