Islamabad, Nov 6: Silkbank Secures Board Approval for Merger with UBL.The Board of Directors of Silkbank Limited (PSX: SILK), which has been making waves in the Pakistani industry, has approved a likely merger plan and is proceeding with the merger with United Bank Limited (PSX: UBL). If the aforementioned combination comes to be, it will be implemented under a scheme of arrangement that has been approved by the SBP and in compliance with Section 48 of the Banking Companies Ordinance, 1962.
The possible merger is still conditional upon reaching further definitive agreement on any other material aspects of the transaction, preparing of agreements and documents required for the consummation of the acquisition, and obtaining all required corporate and regulatory approvals in each relevant jurisdiction.
One of the most important provisions of this proposed merger includes the exchange of 325 Silkbank ordinary shares for one UBL ordinary share who will act as consideration for Silkbank shareholders.
Last year, when placing its interest for merger with Silkbank, UBL said that it would approach the SBP for permission to commence due diligence. The anticipated benefits of this merger includecentralizing of operation, offering a wider service range to customers through broad product offer and enhanced competitive standing for UBL as a leading Pakistani commercial bank.
Silkbank has encouraged its shareholders that it shall keep updating them as the process progresses through notice announcements to keep them well informed. This promises, therefore, deeper pockets for the two banks in a merged operation and a capacity to deliver results to customers in a more efficient and sustainable manner making the proposition of the proposed merger of Silkbank and UBL significant to shareholders and the banking industry.
