UBL board approves merger with Silk Bank through share swap arrangement

KARACHI: United Bank Limited (UBL) has approved the merger of Silk Bank Limited (SBL) into UBL through a share swap arrangement, a bourse filing said on Tuesday.

“… the Board of Directors of United Bank Limited in their 252nd meeting held on Monday December 2 approved the amalgamation of Silk Bank Limited (SBL) with and into United Bank Limited (UBL) through a share swap arrangement in accordance with Section 48 of the Banking Companies Ordinance, 1962,” the bank said in a notice sent to the Pakistan Stock Exchange (PSX).

UBL plans to issue 27,944,188 new ordinary shares to shareholders of SBL as part of a share swap deal. For every 325 shares that someone owns in SBL, they will receive one new share of UBL. Both types of shares have a face value of Rs10 each. These new UBL shares are not part of a rights issue.

The bank has convened an extraordinary general meeting of UBL on December 30 for consideration and approval of the amalgamation and above matters 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, the UBL submitted an offer for the amalgamation of Silk Bank with UBL.