July 9, 2019 (MLN): The management of PICIC Insurance Limited has issued the following clarification to refute its inclusion in the defaulters counter by the Pakistan Stock Exchange, and for the understanding and clarity of the members of the exchange and shareholders of the company.
The company in a notice to PSX elucidated that it is in the process of merger with Crescent Star Foods (Private) Limited, whereby CSF will merge with and into PICIC Insurance Limited. The scheme of merger is pending for approval with the Honorable Court of Sindh. As per the merger petition, the principle line of business of the company will change.
The company also stated that it has applied for Revocation of Insurance License. As a prerequisite for surrender of Insurance license, the company’s insurance related liabilities are to be taken over by another insurer. Due to this the management has decided not to underwrite Insurance business, as continuation of underwriting will conflict with the process of merger, as well as the revocation of insurance license.
The auditors of the company have given qualified opinion on assumption of going concern, since the company has stopped underwriting business. However, the management has resorted in the Director’s report, the pending merger which will remove the concern of the auditor’s opinion in this regard.
The management of PICIC informed that it is making its representation to PSX, for removal of the company’s name from the defaulters counter, keeping in view the pending approval of merger petition in the High Court of Sindh, as the matter is SUBJUDICE.
The notice further informed that the next date of hearing at court is August 7, 2019.
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