December 23, 2021 (MLN): The Board of Directors (BoD) of Waves Singer Pakistan Limited (PSX: WSPL) has approved the draft Scheme of Arrangement between the company and Samin Textiles Limited (SMTM) as per which the home appliance business shall be demerged from the company and be amalgamated with and into SMTM, company’s filing on PSX showed on Thursday.
The said scheme is, however, subject to the necessary approval of the shareholders, creditors, and regulatory approvals and the sanction of the scheme by the Honourable Lahore High Court along with the fulfillment of related legal formalities.
Given this, 256,006,196 new shares of SMTM will be issued and allotted after the proposed capital reduction of SMTM.
Furthermore, 199,724,956 shares of SMTM will be issued and allotted to WSPL.
The notification also underlined that 56,281,240 shares of SMTM to be issued and allotted directly to the WSPL shareholders at 20 shares in SMTM for every 100 shares of WSPL upon implementation of the Scheme of Arrangement.
The issuance of new shares of SMTM will take place after the reduction of SMTM's outstanding share capital from every 225 shares to 100 shares i.e. Total paid up to 26,728,000 SMTM Shares to 11,879,111 SMTM shares.
Rs 2 billion in cash shall be payable to WSPL; no additional compensation shall be applicable against this amount if the said amount is settled by SMTM within two years of the sanction of the scheme, the notification added.
The name of the company is to be changed from Waves Singer Pakistan Limited to Waves Corporation Limited.
