Business Desk 
Dec 04, 2024
Silkbank announced the update in a notice to the Pakistan Stock Exchange (PSX) on Tuesday: United Bank Limited (UBL), one of the leading banks in Pakistan, has approved the amalgamation of Silkbank Limited (SILK) with and into UBL.
Under the agreement, Silkbank’s operations will be integrated into UBL through a share swap arrangement.
This development follows UBL’s offer to Silkbank Limited for amalgamation, aiming to combine Silkbank into UBL.
The statement mentioned: “We inform you that the Board of Directors (BoD) of UBL, in their 252nd meeting held on Monday, December 2, 2024, approved the amalgamation of SILK with and into UBL through a share swap arrangement, in accordance with Section 48 of the Banking Companies Ordinance, 1962.”
The bank shared that the BoD also agreed to amalgamate the scheme of amalgamation and other supporting documentation to be entered into by UBL in connection with the amalgamation.
The execution of the amalgamation agreement and scheme of amalgamation, along with the supporting documents by Silkbank, regarding the amalgamation.
The notice further mentioned: “Based on the swap ratio of one new ordinary share of UBL, having a face value of Rs10, in exchange for 325 already issued shares of SILK, each share having a face value of Rs10, the issuance of 27,944,188 ordinary shares of UBL, other than a rights issue.”
However, it's worth noting that the decisions of the boards are contingent upon “the execution of definitive agreements related to the amalgamation by the parties; receipt of all necessary corporate approvals (including shareholders' approval), regulatory approvals (including from the Competition Commission of Pakistan), and third-party approvals by UBL and Silkbank; and the sanction of the Scheme of Amalgamation by the State Bank of Pakistan under Section 48 of the Banking Companies Ordinance, 1962.”
Additionally, Silkbank announced that an Extraordinary General Meeting (EOGM) will be scheduled for December 30 to approve the amalgamation by the equity holders of UBL.
