Shifa International Hospitals approves merger of Shifa Neuro Sciences Institute

February 26, 2025 (MLN): The board of directors of Shifa International Hospitals Limited (SHFA) has approved the merger of its wholly owned subsidiary, Shifa Neuro Sciences Institute Islamabad (Private) Limited (SNSI), into SHFA (the Amalgamation), subject to the fulfillment of all applicable contractual obligations.

The Amalgamation would lead to inter alia a simplification of the corporate structure by eliminating redundant administrative layers and inter-company relationships, the company's filing on PSX revealed today.

SHFA's oversight, resources, and streamlined management will ensure that operations are more efficient, costs associated with maintaining separate entities are reduced, and compliance processes are simplified.

The merger will also consolidate resources, enabling better asset utilization, improved financial reporting through unified statements, and centralized management of liabilities.

Direct control over operations will enhance decision-making and productivity, while the single entity structure will facilitate future growth, ease capital raising, and strengthen market presence, ensuring the entity is well-positioned for expansion and long-term success.

It will further increase the asset base and size of SHFA and as a result, SHFA will be in a position to effectively and efficiently benefit from economies of scale with respect to the combined business.

Further business expansion opportunities for SHFA are also expected to arise due to this proposed amalgamation.

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