ISLAMABAD - United Bank Limited (UBL) has announced a definitive agreement for the amalgamation of Silk Bank Limited (SBL) into its operations, a move that will see the issuance of new shares in a share swap deal. The decision, which was approved by UBL's Board of Directors on Monday, is pending regulatory and shareholder approvals.
In a share swap arrangement, UBL has agreed to issue one new ordinary share for every 325 already issued shares of SBL. The new shares will have a face value of PKR 10 each, with a total of 27,944,188 ordinary shares being issued at a premium. This consolidation is in line with section 48 of the Banking Companies Ordinance, 1962.
To facilitate the merger, UBL has scheduled an Extraordinary General Meeting (EOGM) for December 30, 2024, in Islamabad, where shareholders will vote on the proposed amalgamation. The Share Transfer Books of UBL will remain closed from December 23, 2024, to December 30, 2024, to determine the entitlement of shareholders to attend the EOGM.
The merger is contingent upon the execution of definitive agreements, the receipt of all necessary corporate, regulatory, and third-party approvals, including the Competition Commission of Pakistan, and the final sanction by the State Bank of Pakistan.
This strategic move is expected to enhance UBL's market position by integrating SBL's assets and customer base into its own operations. The transaction is designed to create value for shareholders and provide a more robust platform for growth and service delivery.
The information regarding this corporate action is based on a press release statement issued by UBL and has been disseminated to the Pakistan Stock Exchange for public knowledge.
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