United Bank Limited (UBL) has announced its decision to merge with Silkbank Limited, a move approved by its board of directors during their 252nd meeting on December 2. The bank disclosed this development in a filing to the Pakistan Stock Exchange (PSX) on Tuesday.
According to the filing, the merger will be executed under Section 48 of the Banking Companies Ordinance, 1962, through a share swap arrangement. UBL plans to issue one new ordinary share with a face value of Rs10 for every 325 shares of Silkbank, each also valued at Rs10. This arrangement will result in the issuance of 27,944,188 ordinary UBL shares, exclusive of any rights issue.
“The merger is aimed at creating synergies and enhancing value for stakeholders by consolidating the financial strengths of both institutions,” stated the notice.
To finalize the merger, UBL will convene an Extraordinary General Meeting (EOGM) on December 30. Shareholders will be asked to review and approve the proposed amalgamation during this meeting.
The merger signifies a strategic move in Pakistan’s banking sector, where consolidation has become a trend for improving operational efficiencies and expanding market presence. UBL, being one of the country’s largest banks, aims to leverage Silkbank’s resources and market base for mutual growth.
The merger process, once approved by shareholders and regulatory authorities, is expected to strengthen UBL’s position in the competitive banking industry. Further updates on the amalgamation will be shared as the process unfolds.
