PSX to demerge real estate operations in streamlining move

February 21, 2023 (MLN): Pakistan Stock Exchange (PSX) has formally announced the demerger of its real estate from its operations, as authorized by the PSX Board of Directors.

The decision is in line with its earlier announcements made in February 2018, August 2019, and June 2021.

Under the arrangement, PSX will be divided into two segments: the Demerged Undertaking and the Continuing Undertaking. The Demerged Undertaking will be merged with PSX Financial Centre (Private) Limited, a wholly-owned subsidiary of PSX, by way of amalgamation. The Continuing Undertaking will be retained by PSX.

In consideration for the Demerged Undertaking, PSX will be allotted ordinary shares of PSX Financial, which will remain a wholly-owned subsidiary of PSX. The Scheme of Arrangement, which has been approved by the PSX Board, will be effectuated and carried out in accordance with the provisions of the Companies Act, 2017.

The Scheme of Arrangement is subject to finalization by the authorized representatives of PSX, obtaining the approval of the Securities and Exchange Commission of Pakistan (SECP), approval of the requisite majority of the respective members of the companies, and sanction of the Scheme of Arrangement by the High Court of Sindh at Karachi.

Once the Scheme of Arrangement is finalized and approved, it will be circulated to PSX and the members in accordance with applicable laws.

The demerger of PSX's real estate from its operations is expected to streamline its business and enable it to focus on its core activities.

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