United Bank Limited (PSX: UBL) has submitted a proposal to Silkbank Limited (PSX: SILK) for the amalgamation of Silkbank into UBL. This move is part of a scheme of amalgamation that will be filed with and sanctioned by the State Bank of Pakistan (SBP) under Section 48 of the Banking Companies Ordinance, 1962.

As part of the proposed amalgamation, UBL has offered to issue new UBL ordinary shares to Silkbank shareholders. The proposed share exchange ratio is one new UBL ordinary share for every 325 Silkbank ordinary shares, according to a stock exchange filing.

The proposed amalgamation is contingent upon several approvals, including those from the Board of Directors and shareholders of UBL, the execution of definitive transaction documents between UBL and Silkbank, and the receipt of all necessary corporate, regulatory, and third-party consents.