SLGL, TRAX set to merge

October 10, 2024 (MLN): The Board of Directors of Secure Logistic Group Ltd (PSX: SLGL) and Trax Online(Pvt.) Limited (TRAX) have decided to merge their businesses, SLGL's filing on PSX revealed today. 

This will allow TRAX shareholders to become part of SLGL and the combined company will operate both SLGL and TRAX businesses under one umbrella.

The merger of TRAX and SLGL is expected to happen through merging or amalgamating TRAX into SLGL or one of SLGL’s fully-owned subsidiaries.

This will be done using a Scheme of Arrangement, following Sections 279-282 of the Companies Act 2017.

The plan needs approval from the shareholders of both SLGL and TRAX, and it also requires the sanction of a High Court.

Additionally, regulatory approvals will be necessary for the merger to go forward.

The parties will endeavour to execute definitive agreements and implement the process of Merger by December 31st, 2024.

The parties have executed a Term Sheet documenting all key terms and conditions and it has been approved by the respective Board of Directors.

These terms and conditions will inter-alia form the basis of entering into definitive agreements between the Parties and preparation of the Scheme to be submitted for sanction by the competent High Court.

The Parties are of the view that the Merger will transform the combined entity to a leading 4 PL Logistics player.

The complimentary Business Lines,  savings through reduction in overlapping Fixed and Variable Costs and a range of synergies that inter-alia includes SLGL's commercial assets and TRAX's strong technology platform will together lead to the maximization of the combined entity's top and bottom lines.

The combined entity is expected to serve more than 300 established corporate clients along with thousands of small and medium enterprises across all Business Lines and segments.

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