Shareholders of Silkbank Limited (PSX: SILK) have approved the proposed amalgamation of the bank into United Bank Limited (PSX: UBL), pending regulatory approvals.

The merger will be executed 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 deemed necessary by the SBP, particularly for any 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 empowered to take all necessary steps to facilitate the merger. Their responsibilities include making required adjustments, submitting the scheme for SBP approval, and managing legal documentation.

The finalization of the merger remains contingent upon meeting all regulatory conditions.

In a related development, in December 2024, United Bank Limited announced the approval of its amalgamation with Silk Bank through a share swap arrangement. Under this merger plan, each share of UBL will be exchanged for 325 shares of Silk Bank, resulting in the issuance of 27,944,188 new ordinary shares of UBL, excluding any rights issues.