AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, AEL Textiles Limited has disclosed material information regarding its proposed merger with SIL (name undisclosed), following the provisions of Sections 279 to 283 and 285 of the Companies Act, 2017. The company’s management presented the Scheme of Restructuring I Arrangement to the Board, which has been approved, pending necessary approvals and the sanction of the Honorable Lahore High Court.
Under the proposed scheme, subject to shareholders’ consent and court approval, AEL Textiles will merge with SIL. This merger will result in the transfer of all assets, rights, privileges (including the company’s listing on the Pakistan Stock Exchange and eligibility for induction with the Central Depository Company), liabilities, obligations, share capital, and reserves from AEL to SIL.
As part of the merger agreement, 4,800,000 shares of SIL will be issued and allocated to the members of AEL as consideration for the merger. Following the necessary filing of documents with the Pakistan Stock Exchange, the shares of SIL will be listed on the PSX. Consequently, AEL Textiles will be delisted from the PSX and dissolved without winding up.
However, the proposed merger is subject to various approvals, including those from shareholders, creditors, and regulatory bodies, as well as the sanction of the Honorable Lahore High Court. AEL Textiles Limited will comply with all related legal formalities to ensure the successful completion of the merger.
Investors, shareholders, and stakeholders are advised to stay updated on further developments regarding the merger as the process moves forward and the necessary approvals are obtained.