February 24, 2020 (MLN): JS Investments Limited (JSIL) has taken two important decisions in its meeting held on February 21, 2020, the company’s notification sent to Exchange revealed.
First, the Board of Directors has decided that the Company may undertake the business of REIT Management Services under the Real Estate Investment Trust Regulations, 2015, in combination with its existing business, subject to the prior approval of Securities & Exchange Commission of Pakistan (“SECP”).
For this purpose, the Board has also approved the necessary alterations in the Memorandum of Association of the Company, subject to the prior in-principle approval of SECP and subsequent approval of the shareholders by a special resolution.
Second, the Board has approved the merger of JS LCF and JS VF (collectively referred to as the “Merging Schemes” with and into JS GF (the 'Surviving Scheme).
The approved merger is subject to the approvals by the unitholders and Trustees of the schemes, Securities and Exchange Commission and other regulatory requirements, after which the net assets of JS LCF and JS VF will be transferred to JS GF on the effective date to be announced by the management company in due course.
As a consideration, the unitholders of IS LCF and IS VF will be issued units of IS GF based on the swap ratio of the effective date of the merger.
The management of the company further stated that the merger will give the unitholders of surviving scheme to benefit from economies of scale due to lower expense ratio, resulting in fulfilling the investment objectives and policies more economically and efficiently.
Meanwhile, it is important to mention that “the investment amount of all the unit holders will remain unaffected except for the impact of capital gain tax, where applicable. The units of the surviving scheme will be issued to the unitholders of the merging schemes (as consideration) in accordance with the swap ratio to be determined on the basis of the net assets of each of the schemes on the effective date,” the notification said.
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