United Bank Limited (PSX: UBL) has proposed a merger with Silkbank Limited (PSX: SILK). Through this plan, Silkbank would merge into UBL in a formal amalgamation, pending review by the State Bank of Pakistan (SBP) under Section 48 of the Banking Companies Ordinance, 1962.
In return, UBL will issue new shares to Silkbank’s shareholders. For every 325 Silkbank shares, shareholders will receive one new UBL share, as stated in the stock filing.
Several approvals remain before finalizing this merger. First, UBL’s Board of Directors and shareholders must approve the terms. Next, both banks need to sign definitive agreements. Finally, UBL must secure required approvals from regulators, corporate entities, and third parties.
UBL plans to keep the Exchange updated on any major developments throughout this process.
