United Bank Limited (UBL) has officially announced its decision to merge with Silkbank Limited, following approval from its board of directors during their 252nd meeting held on 2nd December 2024. The development was disclosed to shareholders via a filing with the Pakistan Stock Exchange.
The merger will proceed under a share swap arrangement in accordance with Section 48 of the Banking Companies Ordinance, 1962. Under the terms of the arrangement, one ordinary share of UBL, with a face value of Rs. 10, will be exchanged for 325 shares of Silkbank, each valued at Rs. 10. This transaction will result in the issuance of 27,944,188 new UBL shares.
The newly issued shares will not be part of a rights issue, as confirmed in the bank’s notice.
UBL has scheduled an Extraordinary General Meeting (EOGM) for 30th December 2024, where the bank’s shareholders will deliberate and vote on the proposed amalgamation.
The merger represents a significant consolidation in Pakistan’s banking sector, with UBL poised to expand its market presence and enhance its financial services portfolio. The integration is expected to unlock synergies and improve operational efficiency for the merged entity.
The merger aligns with UBL’s growth strategy and reflects broader trends in Pakistan’s banking industry, where consolidation is seen as a means to strengthen financial stability and improve service delivery. Shareholders and market analysts will closely watch the upcoming EOGM for further developments.