Shareholders of Silkbank Limited have given the go-ahead for the bank's merger with United Bank Limited (UBL), pending regulatory approvals. The merger will proceed under Section 48 of the Banking Companies Ordinance, 1962, and requires final authorization from the State Bank of Pakistan (SBP) and the Competition Commission of Pakistan.

The approved Scheme of Amalgamation allows for modifications as necessary by the SBP, particularly for rectifications, clarifications, or elaborations.

Silkbank's President and CEO, Shahram Raza Bakhtiari, along with Chief Financial Officer Khurram Khan and Company Secretary Faiz Ul Hasan Hashmi, have been authorized to take all necessary steps to facilitate the merger. Their responsibilities include making required adjustments, submitting the scheme for SBP's approval, and handling legal documentation.

Finalization of the merger is contingent upon meeting all regulatory conditions. In December 2024, UBL announced its approval of the amalgamation with Silkbank through a share swap arrangement, where each share of UBL will be exchanged for 325 shares of Silkbank. This will result in the issuance of 27,944,188 new ordinary shares of UBL, excluding any rights issues.

This strategic merger aims to strengthen the financial positions of both banks and enhance their combined market presence.
Image by Pro Pakistani