Islamabad, Feb 4: Millat Tractors Limited (PSX: MTL) has received approval from the Lahore High Court (LHC) for the merger of its subsidiary, Millat Equipment Limited (MEL), into MTL. The court’s decision, issued in Civil Original No. 30220/24, officially sanctions the Scheme of Arrangement, which outlines the amalgamation process along with related matters.
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According to a notice submitted to the Pakistan Stock Exchange (PSX), the merger will be executed through a share swap agreement. Under the approved scheme, MTL will issue a total of 7,717,718 ordinary shares to MEL shareholders (excluding MTL and its nominees). The swap ratio has been set at one MTL share for every 2.13 MEL shares held. Each newly issued MTL share will have a face value of Rs. 10 and will be credited as fully paid. Any fractional shares resulting from the conversion will be subject to adjustment.
To finalize the process, MEL’s board of directors will determine the official record date for identifying eligible shareholders entitled to the share swap. Further details regarding the execution of the arrangement will be communicated to MTL accordingly. This merger marks a strategic move aimed at streamlining operations and enhancing synergies within the Millat Group, strengthening its market position in the automotive and engineering sector.