The Board of Directors (BoD) at Silkbank Limited has given its go-ahead to the management to formally pursue the ‘potential merger’ with United Bank Limited (UBL).

Silkbank shared the development in a filing to the Pakistan Stock Exchange (PSX) on Tuesday.

“We would like to inform you that United Bank Limited (UBL) has expressed an interest in a potential merger with Silkbank Limited,” read a notice.

“The Board of Directors of the bank has reviewed and considered the UBL proposal and granted its approval to the management of the bank to formally pursue the potential merger and take the required steps, including but not limited to seeking permission of State Bank of Pakistan (SBP) for allowing due diligence of the bank and to enter into discussions with UBL, to finalize the terms and conditions/documentation for placing before the Board, for its consideration and approval, if considered appropriate,” it added.

Last week, UBL in a surprising move expressed interest to merge with Silkbank Limited.

UBL informed Pakistan Stock Exchange (PSX) on Friday “it is exploring a potential merger with Silkbank Limited and intends to seek permission of the SBP to commence due diligence.”

“The potential merger will remain subject to due diligence, internal and regulatory approvals and definitive documents,” it said.

Silkbank on Tuesday said the potential merger remains subject to internal and regulatory approvals and appropriate disclosures, in accordance with the applicable laws, rules, and regulations.

Earlier, the International Commercial Bank South Sudan (ICB), a national South Sudanese bank, expressed its intention to invest up to 50 million euros ($54.5 million) in Silkbank.

Silkbank shared that its Board of Directors, in a meeting held on April 05, 2023, reviewed and considered the Letter of Intention and accordingly granted its approval to the management of the bank to “formally pursue the Potential Investment”.

Last year, Park View Enclave (Private) Limited (PVEL), owned by businessman and politician Aleem Khan, withdrew its intention to acquire at least 51% shareholding and control of Silkbank Limited.