Silkbank Board Approves Merger With UBL

The Board of Directors of Silkbank (PSX: SILK) has approved the amalgamation of the bank with and into United Bank Limited (PSX: UBL) by which the entire undertaking of Silkbank shall be merged, by way of amalgamation with and into UBL through a share swap arrangement. The execution of the Amalgamation Agreement, Scheme of Amalgamation along with the other ancillary documentation by Silkbank with respect to the Proposed Amalgamation. The swap ratio of one (1) new ordinary share of UBL, having face value of PKR 10/- in exchange for 325 already issued shares of the Bank, each share having a face value of PKR 10/-, issuance of 27,944,188 ordinary shares of UBL other than rights issue. This will be subject to inter alia (a) execution of definitive agreements for and in connection with the Proposed Amalgamation by the parties to such definitive agreements; (b) the completion of necessary corporate and regulatory formalities, including obtaining necessary shareholders’ and regulatory approvals in accordance with applicable laws; and (c) sanction of the Scheme by the State Bank of Pakistan.