January 03, 2025 (MLN): PICIC Insurance Limited (PSX: PIL) progress has been notably hindered by the ongoing merger process, with efforts continuing to secure approval from the Sindh High Court and SECP to resume operations.
According to the progress report submitted to PSX by PIL.
The company will merger with Crescent Star Foods (Pvt.) Limited (CSF), where CSF will merge with and into PIL.
However, the approval is still pending before the High Court concerning Letters of Credit (LCs).
“The company has also made a representation before the SECP merger committee requesting them to approve the merger. Letter attached.
The company will resume operations after the Scheme of Arrangement is approved”, the report reads.
In 2017, the shareholders of both companies exercised their prerogative to merge the two entities.
The process was completed, and a petition for approval was subsequently filed in the Honorable Sindh High Court in December 2017.
However, the SECP raised four objections against the petition, delaying its approval.
The matter has been pending before the court for seven years.
The shareholders and the company are facing difficulties, and the economy needs companies to grow and remain active in business.
Globally, businesses often expand through mergers and acquisitions without prejudice.
To overcome the delay and with the intent to move forward, the company submitted an application to the court, wherein it conceded to all four objections raised by the SECP.
While the company does not have any control over the fixation of the matter in the SHC, we request the SECP to reconsider the matter and review it in light of our conceding to the objections.
Accordingly, we request you to update the court on the factual position of conceding the objections, which will help us move forward.
