One of the biggest commercial banks in Pakistan, United Bank Limited (UBL), has made an offer to amalgamate with Silkbank Limited with the goal of combining the two banks.
On Friday, UBL sent a notification to the Pakistan Stock Exchange (PSX) informing its stakeholders of the situation.
In accordance with a plan of amalgamation to be filed with and approved by the SBP under Section 48 of the Banking Companies Ordinance, 1962 (amalgamation), United Bank Limited (UBL) is pleased to announce that, in compliance with our disclosure dated April 28, 2023, it has made an offer to Silkbank Limited for the amalgamation of Silkbank with and into UBL.
As compensation for Silkbank’s shareholders, UBL has offered to issue one new UBL ordinary share with each 325 Silkbank ordinary shares.
In the notice, it stated that “the offer and the amalgamation remain subject to approval from the Board of Directors (BoD) and shareholders of UBL, execution of definitive transaction documents across UBL and Silkbank, and receipt of all corporate, regulatory, and third-party approvals and consents required for the amalgamation.”
According to UBL’s most recent financial reports, for the nine months that ended on September 30, 2024, the bank reported a combined Profit After Tax (PAT) of Rs49.7 billion.
An interim cash dividend of Rs11 per share was announced by the UBL board.
