Silkbank Limited (PSX: SILK) has announced that its Board of Directors has given in-principle approval for a potential merger with United Bank Limited (PSX: UBL). The decision was made during a board meeting held on November 6, 2024.

The proposed merger will proceed under a scheme of arrangement that requires sanctioning by the State Bank of Pakistan, in accordance with Section 48 of the Banking Companies Ordinance, 1962.

In addition, the Board has authorized the Chief Executive Officer of Silkbank to engage advisors and consultants to assess the offer from UBL. These advisors will evaluate the proposal and present their findings to the Board for further consideration.

The potential merger is contingent upon the finalization of deal terms, transaction documents, and the acquisition of all necessary corporate and regulatory approvals, consents, and authorizations.

“We will keep our shareholders informed about the progress of this potential merger through further announcements as developments occur,” the filing stated.