Park View Enclave (Private) Limited has initiated legal proceedings against the proposed merger between Silkbank Limited and United Bank Limited (UBL). The lawsuit, filed in the Sindh High Court in Karachi, contests the amalgamation scheme sanctioned by the State Bank of Pakistan under Section 48 of the Banking Companies Ordinance, 1962.
On December 18, 2024, the Sindh High Court took decisive action by issuing an order aimed at safeguarding pledged securities, while also placing restrictions on the defendants from proceeding without prior consent. UBL has been identified as Defendant No. 17 in the ongoing case.
The suggested merger is currently facing examination, with oversight from the State Bank of Pakistan(SBP). This legal action adds an intriguing twist to the transaction, which has already received the green light from Silkbank’s shareholders. On December 26, 2024, shareholders gave their nod to the amalgamation, pending necessary regulatory approvals from the State Bank of Pakistan and the Competition Commission of Pakistan.
Developments have been communicated to the Pakistan Stock Exchange(PSX), with stakeholders keeping a vigilant eye on the situation for any forthcoming updates.
