United Bank Limited (UBL), one of Pakistan’s largest commercial banks, has approved the amalgamation of Silkbank Limited (SILK) with and into UBL.

The listed bank shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“We have to inform you that the Board of Directors (BoD) of UBL in their 252nd meeting held on Monday 02 December 2024, approved the amalgamation of SILK with and into UBL through a share swap arrangement in accordance with section 48 of Banking Companies Ordinance, 1962,” read the notice to the bourse.

The bank shared that the BoD also approved the agreement to amalgamate, the scheme of amalgamation and other ancillary documentation to be entered into by UBL in connection with the amalgamation.

“On the basis of the swap ratio of one new ordinary share of UBL, having a face value of Rs10 in exchange for 325 already issued shares of SILK, each share having a face value of Rs10, issuance of 27,944,188 ordinary shares of UBL other than right issue,” read the notice.

The bank shared that an Extraordinary General Meeting (EOGM) will be convened on 30 December 2024 for consideration and approval of the amalgamation by the shareholders of UBL.

The decisions of the board are subject to “execution of definitive agreements for and in connection with the Amalgamation by the parties to such definitive agreements; receipt of all corporate (including approval of the shareholders), regulatory (including the Competition Commission of Pakistan) and third-party approvals by UBL and SBL; and the sanction of the Scheme of Amalgamation by State Bank of Pakistan under Section 48 of the Banking Companies Ordinance, 1962”.

Last month, UBL submitted an offer to Silkbank Limited for an amalgamation, aiming to merge Silkbank into UBL.

Following this, Silkbank Limited’s BoD granted their in-principle approval for a merger with UBL.