In a significant development in Pakistan’s banking sector, the Board of Directors of Silkbank Limited (PSX: SILK) has granted in-principle approval for a potential merger with United Bank Limited (PSX: UBL). The decision was made during a board meeting held on November 6, 2024.
The merger, which would be structured as a scheme of arrangement, is set to be reviewed and sanctioned by the State Bank of Pakistan under Section 48 of the Banking Companies Ordinance, 1962. Silkbank’s board has also authorized the Bank’s Chief Executive Officer to appoint advisors and consultants to assess UBL’s proposal, with findings to be presented to the board for further deliberation.
The proposed merger remains contingent on the finalization of deal terms, transaction documents, and the securing of all necessary corporate and regulatory approvals, consents, and authorizations. As the evaluation process unfolds, Silkbank has assured its shareholders of timely updates on any material developments related to the potential merger.
Further announcements will be made as the transaction progresses, keeping shareholders informed every step of the way.
