Islamabad, Feb 18: Silkbank Limited (PSX: SILK) shareholders have approved the bank’s merger with United Bank Limited (PSX: UBL), pending regulatory clearances. This consolidation will take place under Section 48 of the Banking Companies Ordinance, 1962. The merger is subject to final approval from the State Bank of Pakistan (SBP) and the Competition Commission of Pakistan.
The approved Scheme of Amalgamation includes provisions for adjustments requested by the SBP, such as corrections, clarifications, or further details. Silkbank’s leadership, including President & CEO Shahram Raza Bakhtiari, CFO Khurram Khan, and Company Secretary Faiz Ul Hasan Hashmi, have been granted the authority to carry out necessary procedures to facilitate the merger.
Their tasks will involve handling adjustments, submitting the scheme to the SBP for approval, and ensuring all legal documentation is in place. The merger’s finalization hinges on meeting all regulatory requirements.
In December 2024, UBL confirmed the approval of its amalgamation with Silkbank through a share swap deal. Under this plan, UBL shareholders will receive 325 shares of Silkbank for each UBL share. The merger will result in the issuance of 27,944,188 new ordinary shares of UBL, excluding any rights issues.
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This consolidation is expected to streamline operations, boost operational efficiency, and strengthen UBL’s market position. The merger aligns with UBL’s growth strategy and enhances its competitive edge in Pakistan’s banking sector. As the process progresses, stakeholders eagerly await the final regulatory approvals that will mark the completion of the merger, ushering in a new phase for both institutions.
With Silkbank’s integration into UBL, the newly formed entity is poised to expand its footprint, providing a broader range of financial services to its customers. The merger is seen as a strategic move to reinforce UBL’s position in a dynamic banking landscape.
