Karachi, Pakistan – Shareholders of Silkbank Limited (PSX: SILK) have approved the proposed amalgamation of the bank into United Bank Limited (PSX: UBL), pending regulatory approvals.
The merger will proceed under Section 48 of the Banking Companies Ordinance, 1962, with final authorization required from the State Bank of Pakistan (SBP) and the Competition Commission of Pakistan (CCP). The approved Scheme of Amalgamation allows for modifications as required by the SBP, particularly for rectifications, clarifications, or elaborations.
Silkbank’s President & CEO, Shahram Raza Bakhtiari, along with Chief Financial Officer Khurram Khan and Company Secretary Faiz Ul Hasan Hashmi, have been authorized to take all necessary steps to facilitate the merger. Their responsibilities include making required adjustments, submitting the scheme for SBP’s approval, and handling legal documentation. The finalization of the merger remains contingent on meeting all regulatory conditions.
In December 2024, United Bank Limited (UBL) announced the approval of its amalgamation with Silkbank Limited (SBL) through a share swap arrangement. According to the merger plan, each share of UBL will be exchanged for 325 shares of Silkbank. This transaction will result in the issuance of 27,944,188 new ordinary shares of UBL, excluding any rights issues.
The merger marks a significant step in Pakistan’s banking sector, reinforcing UBL’s market position and strengthening financial stability in the industry. Further updates will follow as the regulatory process unfolds.
