United Bank Limited submits offer to merge with Silkbank

ISLAMABAD: United Bank Limited (UBL) has made an offer to merge Silkbank Limited with itself. The announcement was shared with stakeholders of one of the largest commercial banks, through a notice to the Pakistan Stock Exchange (PSX) on Friday.

UBL has formally submitted an offer for Silkbank’s amalgamation into UBL. This offer is part of a plan that will be filed with the State Bank of Pakistan (SBP) under Section 48 of the Banking Companies Ordinance 1962.

Under the proposed terms, UBL has offered to issue one new UBL ordinary share in exchange for every 325 ordinary shares of Silkbank held by its shareholders.

The merger is still subject to a number of conditions, including approval from UBL Board of Directors and shareholders, the signing of the necessary transaction documents between UBL and Silkbank and receiving all required corporate, regulatory and third-party approvals.

UBL has reported a consolidated profit after tax (PAT) of Rs49.7 billion for the nine months ending on September 30. Additionally, the UBL board has announced an interim cash dividend of Rs11 per share.

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