UBL Gets Board Approval to Merge With Silkbank

The Board of Directors of United Bank Limited (PSX: UBL) in their 252nd meeting held on Monday 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 Banking Companies Ordinance, 1962 (Amalgamation). The board approved the agreement to Amalgamate, the Scheme of Amalgamation, and other ancillary documentation to be entered into by UBL in connection with the Amalgamation. Based on the swap ratio of one new ordinary share of UBL with a face value of PKR 10/- for every 325 shares of SBL, each with a face value of PKR 10/-, the board also decided to issue 27,944,188 ordinary shares of UBL, excluding a rights issue. This decision of the Board is subject to, amongst others: a) execution of definitive agreements for and in connection with the Amalgamation by the parties to such definitive agreements; b) 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 c) the sanction of the Scheme of Amalgamation by State Bank of Pakistan under Section 48 of the Banking Companies Ordinance, 1962.