Zahur Cotton intends to resume commercial production

October 04, 2024 (MLN): Zahur Cotton Mills Limited (PSX: ZHCM) is actively taking steps to initiate or resume commercial production and business operations, according to the Quarterly Progress Report submitted to the Exchange.

The company is also preparing for the listing of its shares on the Central Depository Company (CDC), the report added. 

ZHCM is engaged in a strategic merger with an IT company to revitalize its operations, it noted. 

Lately, the merger scheme, approved by the Board of Directors, has been filed with the Honorable Lahore High Court, in compliance with relevant regulations.

In addition, the Lahore High Court has completed the initial hearings and appointed Court Lawyers to oversee the Extraordinary General Meeting (EOGM) of shareholders to seek approval for the merger scheme.

On March 27, 2024, the EOGM was conducted, and the shareholders approved the Merger Scheme while the Court Lawyers submitted their report to the Court.

A third hearing was held on 4th September, during which SECP was advised to review the company's response to their comments on the Scheme of Arrangement.

The next hearing is scheduled for October 08, 2024, wherein the SECP will present their response to the company's submission.

Meanwhile, the Competition Commission of Pakistan has granted approval for the business merger.

The management of the company is optimistic that the Court will soon finalize the Merger Scheme. Upon the Court's approval, the operations of the IT company will be integrated into Zahur Cotton Mills Limited, leading to profitable business operations for the benefit of our shareholders.

Furthermore, the company remains committed to delivering a positive outcome for the stakeholders and is focused on the timely commencement and resumption of our business operations.

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