December 14, 2023 (MLN): The Board of Directors (BoD) of Service Industries Limited (PSX: SRVI) has decided to demerge and transfer the Tyres & Tubes segment of the company along with its manufacturing facilities to a wholly owned subsidiary, the company's notice to the PSX showed today.
The subsidiary will be incorporated through the court sanctioned scheme, which will be subject to the finalization of relevant documentation and approval of the scheme by the BoD of SRVI.
Moreover, the BoD of SRVI has decided to demerge and transfer the Retail segment of SRVI along with its all relevant assets, operations liabilities, etc., to a wholly owned subsidiary of the company (to be incorporated).
This will also be subject to the finalization of relevant documentation and approval of the scheme by the BoD of the company.
SRVI will continue to own and operate the remaining businesses comprising of footwear unit and investments after the de-merger of the Tyres & Tubes segment and Retail Segment from Service Industries Limited.
Further, the BoD decided to increase the long-term equity investment in Service Long March Tyres (Private) Limited (SLM), an associated / subsidiary company, by up to Rs1.5 billion from time to time, as and when required by SLM, by subscribing, at Par, up to 150 million further fully paid up ordinary right shares of Rs10 each.
