UBL looking to merge with Silkbank
via share swap deal
United Bank Limited (UBL) has
formally proposed a merger with Silkbank Limited, offering a share swap
arrangement to consolidate Silkbank into UBL. This proposed amalgamation is
pending review and approval by the State Bank of Pakistan (SBP).
In a notice to the Pakistan Stock
Exchange (PSX) on Friday, UBL confirmed that it had submitted the merger
proposal in line with Sections 96 and 131 of the Securities Act, 2015, and
PSX’s Rule Book requirements. “Further to our disclosure dated April 28, 2023,
United Bank Limited is pleased to announce that it has submitted an offer to
Silkbank Limited for the amalgamation, subject to SBP’s sanction under Section
48 of the Banking Companies Ordinance, 1962,” the notice read.
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As part of the merger terms, UBL has
offered to issue one new UBL ordinary share for every 325 Silkbank ordinary
shares. This share swap deal would serve as compensation for Silkbank
shareholders upon completion of the merger.
The proposed merger requires
approval from UBL’s Board of Directors and shareholders, the finalization of
transaction documents with Silkbank, and all necessary corporate and regulatory
consents.
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UBL stated it would provide updates
to the exchange on any significant developments.
Source: Profit Pakistan