The Board of Directors of United Bank Limited (UBL) [PSX: UBL], in its 252nd meeting held on Monday, approved the amalgamation of Silkbank 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.
Share Swap Ratio and Issuance Details
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.
Conditions for Completion
The proposed merger remains subject to several conditions, including:
- Execution of definitive agreements between UBL and SBL.
- Obtaining all necessary corporate, regulatory, and third-party approvals, including those from the Competition Commission of Pakistan.
- Approval of the Scheme of Amalgamation by the State Bank of Pakistan under Section 48 of the Banking Companies Ordinance, 1962.
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.
