On November 6, 2024, the board of directors of Silkbank Limited (PSX: SILK) granted in-principle approval for a potential merger with United Bank Limited (PSX: UBL), paving the way for the bank’s integration.
According to Section 48 of the Banking Companies Ordinance, 1962, the merger would be approved by the State of Bank of Pakistan as part of a plan of arrangement.
Additionally, the board has authorized the Bank’s Chief Executive Officer to engage external experts to evaluate UBL’s offer and provide their recommendations to the board.
The potential merger is contingent upon finalizing the deal terms and transaction documents, as well as obtaining all required corporate and government approvals, consents, and authorizations.
“We shall keep our shareholders updated with respect to this Potential Merger by making further announcements as and when the matter progresses,” the document continued.
United Bank proposed a merger with Silkbank into UBL on November 1 as part of an amalgamation plan. According to UBL’s proposal, for every 325 ordinary shares held by Silkbank shareholders, one (1) new ordinary share of UBL would be issued.
